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

Library catalogue : objectives purposes and functions , OBJECTIVES Li...

OBJECTIVES Library catalogue is an important tool in a library and cataloguing is one of the most important activities of a library. In this Unit, you are introduced to a few

State five objectives that the ppa 2006 aims to achieve, QUESTION The P...

QUESTION The Public Procurement Act 2006 (PPA 2006) is a modern procurement legislation based on UNCITRAL Model Law. PPA 2006 was enacted in 2006 and came into force in 2008. A

Library networks in usa and uk, Library Networks in USA and UK   The Un...

Library Networks in USA and UK   The United States has definitely taken a lead in library networking. Among the prominent agencies in this regard, are the Library of Congress,

Distinguish between underemployment and unemployment, Problem 1: a. Dis...

Problem 1: a. Distinguish between underemployment and unemployment? b. Why do they constitute a serious development problem? Problem 2: a. Compare basic types of pla

Important security measures in e-banking, a) Explain why the following se...

a) Explain why the following security measures are important in e-banking: (i) Data confidentiality (ii) Data Integrity (iii) Access control (iv) Auditing b)

Define learning, QUESTION (A) Define learning (B) Playing on a backy...

QUESTION (A) Define learning (B) Playing on a backyard one day, three-year-old Albert is on a swing when a rabbit suddenly appears out of the bushes and startles him. He sli

Selection of sources, Selection of Sources: A good approach to literat...

Selection of Sources: A good approach to literature search is looking up a bibliography, an encyclopaedia or a review publication. This provides background information as also

Information services - information behaviour, Information Services: In t...

Information Services: In that part we shall discuss eight types of information services:  Current Awareness Service (CAS)  Selective Dissemination of information (SDI)

Define and explain the term management, Question 1: (a) Define and expl...

Question 1: (a) Define and explain the term management. (b) What are the roles of managers in an organisation? (c) Rather than managers, organisations require leaders. D

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