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

Historical approach, HISTORICAL APPROACH: Meaning and Characteristics ...

HISTORICAL APPROACH: Meaning and Characteristics In  the following text the meaning and characters of historical approach will  be discussed.  Definition:  It is concerne

Library networks, Library Networks   A Library network is defined by Hu...

Library Networks   A Library network is defined by Hunter and Bakewell as "A group of libraries and/or information service points, connected together for the purpose of satisfy

Inputs to quality planning process, I nputs to quality planning process ...

I nputs to quality planning process For  creating  an appropriate quality plan,  it  is very  important  to  provide proper inputs to the quality planning process. The various

Verbal communication , Verbal communication  The verbal communication i...

Verbal communication  The verbal communication is split in three sections as under:  Grammar:  Informal speech often uses abbreviations, contractions and colloquialisms

Integrated solid waste management, Question: A recent report recommends...

Question: A recent report recommends that 'Coherent with Integrated Solid Waste Management practice, a Waste-to-Energy plant should be implemented in Mauritius. However, its ca

Engineering Risk Management, Total Marks – 40 (Note: The information for t...

Total Marks – 40 (Note: The information for this question is based on the material contained in Hopkins, Andrew (1999) Managing major hazards: the lessons of the Moura Mine Disast

Components of hrd-hrd process, HRD Process HRD is a continuous proces...

HRD Process HRD is a continuous process and not merely a set of planning, and setting of mechanisms, instruments, techniques, etc. The mechanism and techniques such as perfor

Output of quality planning process, O utput of quality planning process ...

O utput of quality planning process Quality management plan is one of the major outputs of quality planning. It describes how the project management team will implement  the q

Biology, What are the characteristics of Protozoa?

What are the characteristics of Protozoa?

Operation management, types of manufactring systems in operation management...

types of manufactring systems in operation management

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