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

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

Solid waste management, The solid wastes from a summer camp with 100 childr...

The solid wastes from a summer camp with 100 children and a staff of 25 are to be collected once per week. If bottles and cans (representing 20% of the weight) are removed, paper

Loose assemblage, Loose assemblage is assembling together of two or more of...

Loose assemblage is assembling together of two or more of: subjects (basic or compound) isolate ideas (in one and the same facet, or isolate ideas in one and the same array)

Define the term quality, Question 1 Define the term Quality Question 2 W...

Question 1 Define the term Quality Question 2 What is the objective of Reliability? Discuss various issues involved in ensuring Reliability Question 3 What are the basic princ

Organisation - library management, Organisation: In an open access lib...

Organisation: In an open access library which allows users to browse, choose and select books of their interest, shelf organisation and arrangement of books are of primary imp

Individual ministerial responsibility, QUESTION 1 Explain clearly the m...

QUESTION 1 Explain clearly the meaning of the following- (a) Collective Responsibility of Ministers (b) Individual Ministerial Responsibility QUESTION 2 "Some pol

Advantages and limitations - experimental research, Advantages and Limitati...

Advantages and Limitations: Experimental  approach represents the most  powerful method for  testing hypothesis of  the  cause and  effect relationship between variable. Becau

Stock market, assignment on stock market for 10 marks basis

assignment on stock market for 10 marks basis

Budget allocation register and work diary, Budget Allocation Register: ...

Budget Allocation Register: This is the basic financial guide for acquisition work and this must be consulted at the different stages of document selection, ordering and passi

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