vendor management. after selecting what to why? and how much to buy? there is a need to select from...
TRANSCRIPT
Vendor Management
Vendor Management
After selecting what to why? and how much to buy? There is a need to select from where to buy? i.e. the source of merchandise supply.
The source is called the vendor, supplier or manufacturer
Objective
To get the best bargain for the buyer
Maximize overall value for the purchase
Factors
Factors
Skill Product Quality Delivery Cost Capacity Govt. regulation
Factors
Political and economical environment Buyer to vendor relation Human Rights or CSR
Cost Primary issue for most of sourcing company is
cost
Its very important to analyze the tradeoff between domestic costing and global costing
With costing other factors like efficiency needs to be include
Cost
Its also important to consider the below factors with the cost
Risk(political,econimical,political,social) Control (quality and production) Investment(management and support)
Capacity Capacity is an important consideration
when a potential sourcing alternative is being evaluated
A good sourcing executive should carefully evaluate for potential partner on the basis of capacity
Basis of Capacity
Financial Capacity
Plant Capacity
Workforce capacity
Minimums Not only must a company be considered
about how much volume a contractor can handle but also about the minimum Order quantities
Most of the contractors do not accept the orders below the specified quantity
Labor Skills Garment manufacturing is a labor intensified
sector so it’s a big advantage to have a skilled manpower for both supplier and buyer
As a merchandiser you must evaluate the true capacity of your supplier
Work on a tradeoff between cost and labor skills
Infrastructure Many international or domestic contractor can
provide low cost labor, sufficient capacity and good skill
However if there country or factory doesn't have a adequate infrastructure, choosing them as a sourcing partner may be prove costly
Infrastructure When an apparel company is considering for a
global sourcing partner it must carefully analyze the infrastructure and the other factors which are as follows:
Availability of quality raw material Trim and packaging materials Testing laboratories Reliability of electric power, material supplies
and shipper Good roads for transportation and good
connectivity
Throughput time
Factor effecting throughput time
Throughput time
Quality
Quality
Assignment