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

Reference and information access tools, REFERENCE AND INFORMATION  ACCESS ...

REFERENCE AND INFORMATION  ACCESS TOOLS: Libraries have always been engaged in providing services to their users. Maximum utilization of resources is the principle underlying

Study carrel -reader activity area of library building, Study carrel -Reade...

Study carrel -Reader Activity Area of library building -library managenent Study carrels are exclusive areas, located in quieter and undisturbed part of the library, which are

Quotation method and tender system - acquisition, Tender System: In th...

Tender System: In the tender system, each list of books selected is sent to a number of booksellers who are requested to quote their lowest price for each book. The orders are

Persuasion, Persuasion When communication is your goal often is to pers...

Persuasion When communication is your goal often is to persuade the audience to get the message that you are conveying to them. Persuasion is connected to the feasibility of th

Maintenance work and management, MAINTENANCE WORK AND MANAGEMENT: Of a...

MAINTENANCE WORK AND MANAGEMENT: Of all the functions in a library, the maintenance  work is the least discussed in professional literature. However, the importance of mainten

Information for innovation , Information for Innovation  Innovation is...

Information for Innovation  Innovation is based on new ideas, and new combination of old ideas, the utility of which is tested with applications using different kinds of infor

What do you understand by preventative legal management, Question 1: In...

Question 1: In terms of planning and developing a hospitality organisation, analyse the scope and benefits of a feasibility study. Question 2: Internationalisation is

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