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

Identify and explain the recent, QUESTION 1 As the marketing executive ...

QUESTION 1 As the marketing executive of Burger King, what are the recommendations that you can make to the Board of Directors to improve sales and recover market share apart f

Surveys and censuses, Surveys and Censuses   There are also organisatio...

Surveys and Censuses   There are also organisations which have been set up specifically to gather statistical information through censuses and surveys. This may be considered a

Advantages of developing a greenfield site, Question : (a) Examine how ...

Question : (a) Examine how a feasibility study can be used by a Hospitality Manager. (b) Briefly describe what aspects should be considered in a feasibility study. (c) Co

Questions and answers while going for a negotiation, Let us review some que...

Let us review some questions that as a negotiator you can face while conducting a negotiation and the considerations to find answers to these questions:  Framing the opening

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

Legal requirements for hospitality establishments, Question 1: Designs ...

Question 1: Designs need to be practical, functional and rational. According to you and with appropriate examples from the hospitality industry, what are the common problems fa

Comparative and evaluative survey, Comparative and Evaluative Survey: ...

Comparative and Evaluative Survey: Comparative Survey: Let us  suppose, you wish  to compare the "perceived needs of  rural  and urban women  in order to  find similarities

Planning for quality, P lanning for Quality All projects have specific...

P lanning for Quality All projects have specific measurable objectives and goals to achieve. Planning  quality  is  the  first  step  which  systematically translates  the obj

Analyze the national and regional planning process, QUESTION Previously...

QUESTION Previously, there was much emphasis on preparation of the end state ‘master plan', which was assumed to be sufficient for guiding and controlling future development pa

Discuss the major joints of thorax and pelvis, Question 1 Describe the ...

Question 1 Describe the external features of the heart. Add a note on circulation of blood within the heart 2 Discuss the major joints of thorax and pelvis 3 Explain the

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