supplier selection

Question 1

Consumer sourcing and Commercial sourcing

Answer 1

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

Question 2

Purchasing is

Answer 2

tactical

Question 3

what impacts are of effective sourcing?

Answer 3

operational; financial; strategic; risk; information

Question 4

stages of choosing supplier

Answer 4

searching supplier(rfi, rfp, rfq), supplier scoring, supplier selection(tco), negotiate contracts, follow up

Question 5

competitave bidding

Answer 5

criteria and spesifications clearly defined, a lot of suppliers,volume purchased is hugh

Question 6

negotiation

Answer 6

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

Question 7

e- auctions adv.

Answer 7

transparent, decrease error rate, increased buying reach
, reduction in ordering cycle time
simplified comparison of supply sources

Question 8

e- auctions disadv.

Answer 8

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