supplier selection Flashcards
Consumer sourcing and Commercial sourcing
consumer:many suppliers, buyer is final customer small portion of suppliers total business, little ability to negotiate
commercial:larger volumes purchased; very specialized purchasing needs, number of suppliers are limited
Purchasing is
tactical
what impacts are of effective sourcing?
operational; financial; strategic; risk; information
stages of choosing supplier
searching supplier(rfi, rfp, rfq), supplier scoring, supplier selection(tco), negotiate contracts, follow up
competitave bidding
criteria and spesifications clearly defined, a lot of suppliers,volume purchased is hugh
negotiation
when can not be clearly defined, many criteria, couple of suppliers, customise,Product being purchased is new or technically complex
supplier icustomize product to buyer
e- auctions adv.
transparent, decrease error rate, increased buying reach
, reduction in ordering cycle time
simplified comparison of supply sources
e- auctions disadv.
unrealistic low bidders seek to renegotiate after contract is awarded (may eliminate better suppliers)
auction may include nonparticipants seeking to gather market intelligence
may interrupt an existing good supplier relationship