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This 2 page Class Notes was uploaded by Ameya Margaj on Tuesday February 24, 2015. The Class Notes belongs to MGO 637 at University at Buffalo taught by Dominic LoTempio in Spring2015. Since its upload, it has received 82 views. For similar materials see Purchasing and Global Supply Management in Business, management at University at Buffalo.
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Date Created: 02/24/15
Lecture 4 22315 0 Size relationship look at buyer seller relationship How imp is the seller is to the buyer39s business 0 Use of offshore suppliers 2 fold are you gonna use offshore supplier is your supplier gonna use offshore supplier Countertrade like a bartar system Goods for Goods Usually bet governments Competitors as suppliers Samsung and Apple 0 Sustainability and minority objectives Riskreward issues 0 If suppliers don39t wanna give their nancial data in a high risk high reward case then it is at buyer39s discretion to accept the supplier product or reject it RFI it39s not a bid or a request for pricing RFP or RFQ is a formal bid given by the supplier RFQ may or may not make an award RFPrequest for proposal make an award RFP is usually for services or a complex commodity item RFP has cost only as a part of the evaluation process Other parts are delivery performance service quality and so on IFB Only for commodities and you only look at the price 0 Key criteria for supplier evaluation In primary cost or price quality and delivery mgmt capapbility leadership employee capability cost structure TQM and others Mgmt capability questionnaire generally only do when it39s high risk 0 Cost structure if we know the suppliers cost data we can work with them to reduce their cost 0 Total Quality Performance ISO criteria etc 0 Financial stability nancially dependent on the buyer Ex GM has a greater risk as it takes all products from the suppliers ASN adv notices Processing cost 90 100 a process in most companies NYS has more regulations more paperwork more time spent and hence more cost P Cards used for low risk high volume low value items Chapter 10 0 Why source worldwide Costprice bene ts 0 Access to technology Quality same in cheap cost or better than you have Availability Competition to domestic suppliers Meet competitors39 buying patterns Have a foreign presence Barriers to worldwide sourcing Lack of skills 0 Resistance to change shifting from longstanding suppliers domestic market nationalism Longer lead times greater logistical political and nancial risks 0 Customs language and culture 0 Currency uctuations easiest way to deal with your country s currency 0 Increased supply risk look at value when the product is more speci c and more customized to you rather than the price Triggering events supply disruption etc lPO39s International Purchasing Of ces INCOTERMS what is an incoterm Countertrade bartar goods for goods counterpurchase Costs associated with international purchasing transport customs duty insurance premiums fees and commissions port terminal and handling fees customs brokers fees payment and currency fees inventory carrying costs 0 Letter of credit usually with companies you don39t trust is issued by buyer39s bank to supplier39s bank when LOC terms are ful lled and paid when accurate and proper documents are presented to buyer39s bank Costs 5 extra as bank charges for this transaction SWOT Analysis on tness equipment vendors Video Link Body Language Says All httpswwwvoutubecomwatchv KsM h lQhMc
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