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

Identification based trust and calculus based trust, Question 1 Differe...

Question 1 Differentiate between identification based trust and calculus based trust. Question 2 M. Thomas, the Managing Director of a company has recently attended a w

Historical sources - source of data, Historical Sources: Historical Da...

Historical Sources: Historical Data  are a combination of documentary and field sources. These consist of  documents and various historical sources  to which the historian him

Nature of knowledge, The Nature of Knowledge It is indeed quite difficu...

The Nature of Knowledge It is indeed quite difficult to identify useful knowledge among the pool of knowledge in  an organisation.  Knowledge  is a critical  asset  that  needs

Guidelines for conducting a competitive negotiation , Guidelines for conduc...

Guidelines for conducting a competitive negotiation  The most important rule in conducting a complex negotiation is that you should have done the planning for it and you should

Describe why planning is vital in preparing a daily plan, QUESTION 1 Ca...

QUESTION 1 Caring for differences in Early Childhood Centres has become very important. Briefly explain why QUESTION 2 Briefly describe why planning is important even i

Organizational Behaviour, If you were one of the other foreman, what could ...

If you were one of the other foreman, what could you do to make Rajinder''s transition easier.

What are the main styles of negotiation, Question 1: What are the alter...

Question 1: What are the alternative ways in which a decision can be made that affects the parties involved? In what ways will negotiation be seen as a tactical contest?

Characteristics of research tools, CHARACTERISTICS OF RESEARCH TOOLS: ...

CHARACTERISTICS OF RESEARCH TOOLS: An ideal measuring instrument is one which results  in measures that are relevant, accurate objective, sensitive and  efficient. Measures wh

Porter''s five forces model, QUESTION 1 Implementation of selected stra...

QUESTION 1 Implementation of selected strategies is a phase in the strategic management process. Discuss the key issues that need to be considered in this phase. QUESTION 2

Developmental longitudinal and cross sectional survey, Developmental Longi...

Developmental Longitudinal  and Cross Sectional Survey: Suppose, you wish  to  study the  growth and development pattern  of children from birth  tofive years  of age. This  i

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