Page 100 - DMGT525_MATERIALS_MANAGEMENT

Unit 7: Selection of Suppliers

Trade Exhibits – Regional and National Notes

Regional and national trade exhibits are organized periodically. They exhibit various range of
products supplied by suppliers and present excellent opportunity to buyer to locate potential
suppliers.
Internet

Internet is the most powerful and handy means to identify a potential source of supply. A list of
likely sources is prepared on the basis of the above information. Preliminary screening of the
list is carried out, based on some broad consideration such as prior knowledge about suppliers’
finances, quality, capability and reputation, type of supplier (manufacturer or distributor),
existing governmental regulation, and geographical location and so on to arrive at short listed
suppliers.

7.1.2 Enquiry Stage

The components of enquiry stage are discussed as follows:

Preliminary Enquiry

A preliminary enquiry called a request for information (RFI) is sent to all short listed suppliers
from the previous stage, to seek information. The RFI is a formal way to request information
from a supplier or vendor about a product or service a buyer is about to procure. The RFI can be
used as a screening device to further prune the list of potential suppliers. The specific information
asked for in RFI normally includes:

1. The name of the firm and principal office
2. Type of company: proprietorship, partnership, private limited or public limited
3. Space currently occupied and expansion plan
4. Technical capabilities: Equipment, process and skilled manpower
5. Experience

6. Sales and profit for last five years
7. Banker’s report
8. Other clients

9. Supplier’s suppliers
10. Product mix
11. Quality credentials:
 Whether ISO certified company

 Quality assurance system (testing facilities, inspection system, use of statistical tools
and so on)
 Level of outgoing quality

 Process capability
12. Plant history

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