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

Outline four major benefits of erp implementation, QUESTION a) Outline ...

QUESTION a) Outline four major benefits of ERP implementation. b) 'An ERP integrates the organization as one functional unit'. Briefly explain the meaning of this statement.

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

Acquisition through donations - library administrations, Acquisition Throu...

Acquisition Through Gifts/Donations: Gifts and donations constitute an important source acquisition of reading materials in a library. Many a library has benefited enormously

Screening information or steps, SCREENING INFORMATION OR STEPS : Some ...

SCREENING INFORMATION OR STEPS : Some of  the references identified may not be relevant, readers  can usually judge  the  relevance  of the  reference quickly based  on abstra

Metrics, M e t r i cs Metrics is defined as the measurement to det...

M e t r i cs Metrics is defined as the measurement to determine the degree of the conformance to the  specifications. This measurement allows    the organisation to improv

What is pegged skirt, Question 1 Explain the steps in developing pattern ...

Question 1 Explain the steps in developing pattern for built-up neckline and cowl neckline along with  diagrams Question 2 What is pegged skirt? Explain the method of develo

Organisational Change, Question 1. Demonstrate the use of analytical tools ...

Question 1. Demonstrate the use of analytical tools to monitor the progress and the effect of change Question 2. Assess monitoring and measurement techniques to change within an o

Finishing - binding processes, Finishing: Finishing is the final proce...

Finishing: Finishing is the final process of making the binding more artistic and attractive. This includes: preparation of the leather covering  imaginative design f

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

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