Selection of potential suppliers , Other Management

Assignment Help:

Selection of potential suppliers 

This is an important function of the purchase department. If the material under reference is a standard item covered by company standards, then the standards will have a list of approved suppliers for the item under reference. This item would have been approved after due analysis of samples and ensuring its compliance with national or international standards. If the material/component under reference is a mechanical item/equipment, list of suppliers for this type of item may be identified based on historical data. 

In case items under reference are first buy category, suppliers? catalogue or trade journal directory will be of use. Number of potential suppliers depends on factors like value, importance of the part and so on. The sources of specifications are: 

  •   Standards. 
  •   Buyer specification. 
  •   Engineering drawing. 
  •   Suppliers catalogue. 
  •   Miscellaneous like part sample. 

Procurement is the sourcing process that a company uses to get the goods and services it requires.  

  • Sourcing: There are three types of sourcing:  

1.  Sole source for proprietary items. 

2.   Multiple sources for general/off the shelf items  to get price competitiveness. 

3.   Single source, as decided by organisation for critical items. 

  • Contract buying: Material requirement planning sometimes encounters a situation wherein it needs a few items of general nature in small quantities at short notice.  The shortage would have occurred due to some unforeseen circumstances in supply chain. We can deal with this type of buying at planner level in material requirement planning. The  purchaser sometimes issues the raw material for such requirement on chargeable basis. 

After selecting the potential suppliers, buyers may request bids and quotes. It is generally termed as Invitation. 


Related Discussions:- Selection of potential suppliers

Managerial economics, what is prisoner''s dilemma'',of non cooperative game...

what is prisoner''s dilemma'',of non cooperative game?

Sescribe the principles of bureaucratic management, Question 1: (a) Des...

Question 1: (a) Describe the five principles of bureaucratic management put forward by Max Weber. (b) Elaborate on the advantages and disadvantages of bureaucratic manageme

Disadvantages of the preferred teaching method, QUESTION 1 1. Discuss t...

QUESTION 1 1. Discuss the advantages and disadvantages of the preferred teaching method as revealed by the study 2. What are the implications and issues that teachers have t

Steps for force account , Steps for force account  Now that we are awar...

Steps for force account  Now that we are aware of the requirements for force account contracting, let us understand the steps involved in force account contracting:  1.  Est

How is strategy to be implemented, QUESTION 1- What is strategy impleme...

QUESTION 1- What is strategy implementation and what problems may arise in implementing a strategic change? 2- Who implements strategy in the organisation and how can the be

Constraints - library catalogue code, Constraints: This unit calls for...

Constraints: This unit calls for a comprehensive and thorough treatment to cover the various aspects of history and development of library catalogue codes. However, such a tho

User needs and use and user studies, User Needs and Use and User Studies: ...

User Needs and Use and User Studies: Libraries, information centres and databanks are now known as information facilities which exist for the benefit of users. The management

Added entries and tracing - cataloguing work, Added Entries: As menti...

Added Entries: As mentioned earlier, Added Entries are made using the information given in the Main Entry. The number and  type of Added Entries required will vary according

Measure the effectiveness of the campaign, Question: The central Bank o...

Question: The central Bank of Utopia in the tiny kingdom of Bawana, near South Africa (pop 1.6 million) has decided to replace the twenty-five and fifty pesos notes by coins o

Response rate, Response Rate This is the percentage of responses genera...

Response Rate This is the percentage of responses generated through a direct marketing campaign.

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd