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Module 1 Ppt2 Lect3 4

This document provides an overview of key concepts in warehouse management including the seven rights of logistics, supplier selection process, sources of information, supplier appraisal, and bidding process. It discusses the seven rights as right product, quality, quantity, price, customer, time, and place. It outlines the stages of selecting the right supplier including identifying needs, listing potential suppliers, determining selection criteria, meeting suppliers, and signing a contract. Sources of supplier information and the process of appraising suppliers and evaluating their capabilities are also summarized. Finally, the bidding process and its typical steps of requests for proposals, bid preparation, evaluation, and contract negotiation are described.

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24 views

Module 1 Ppt2 Lect3 4

This document provides an overview of key concepts in warehouse management including the seven rights of logistics, supplier selection process, sources of information, supplier appraisal, and bidding process. It discusses the seven rights as right product, quality, quantity, price, customer, time, and place. It outlines the stages of selecting the right supplier including identifying needs, listing potential suppliers, determining selection criteria, meeting suppliers, and signing a contract. Sources of supplier information and the process of appraising suppliers and evaluating their capabilities are also summarized. Finally, the bidding process and its typical steps of requests for proposals, bid preparation, evaluation, and contract negotiation are described.

Uploaded by

2206172000916
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Module 1.

Warehouse Management

By
Prof. Harshita S. Gaikwad
Module 1 lect. 3 & 4
 Seven rights
 Selection of the right supplier
 Source Of Information (SOI) & process
 Supplier appraisal
 Vendor capability
 Bidding process
7 R’s Of Logistics & SCM
Right Product
• The product should be the same as what the customer has
ordered which is a basic requirement of placing orders by a
customer.
• Placed orders should not substitute with other products.
Right Quality
• Product quality is another key component in Logistics.
• There are different standards for different goods.
• The quality of a product should not dissatisfy customers, It may
make the customer satisfied or happy.
Right Quantity
• The right quantity is the volume a customer has ordered.
• Receiving less than or more than the ordered quantity could
become a burden to the customer.
• Receiving less will fail customers to cater to the market he/she is
having a presence.
Right Price
• The right price is the payment done for the valued customer
receives for procuring a product or a service.
• The right price depends on the other 6 rights of Logistics.
 Right Customer
The ordered products or services should reach the right customer who requires the products or
the services.

Receiving a product or a service to the wrong customer leads the right customer to be
dissatisfied and fail the logistics of the product chain.

 Right Time

The right product should be produced at the right time to cater to the demand.

 Right Place
The right place is the 7th right factor in logistics.

Even if the right product reaches the wrong place/market it won’t be easy to see the expected
demand for the product.
Selection of the right supplier

Supplier selection is a process that needs to follow a strategy


for a business to end up with its ideal supplier.
…. Continued
• Stage 1: Identify Business Needs
• Stage 2: List Potential Suppliers
• Stage 3: Determine your Supplier Selection Criteria
 Quality and safety of products – this is the very basic and non-negotiable for your
business when looking for a supplier and something that your supplier should be
consistent with.

 Flexibility – the supplier’s ability to adapt to your (possible) changing business needs
may come in handy should you require some changes to your orders in the future.

 Delivery – a supplier, at the very least, is expected to deliver on time all the time and
be reliable enough to inform you if there are going to be any foreseen delays.

 Reliability – a reliable supplier is a business partner that can greatly contribute to


your business’ success while, on the flip side, an unreliable and unpredictable
supplier can spell trouble for your business.
• Cost – Make sure that the supplier’s cost is within budget. Ensure
also that savings made on lower costs will not compromise the
quality and safety of the supplier’s products.
• Another thing to consider is if there is a type of payment
arrangement that’s going to be ideal or agreeable to both parties in
case your business needs to do this in the future.
• Quality of service – the kind of service your supplier provides can
make them stand out among their competitors and can make doing
business with them a good experience for you.

• Stage 4: Meet the Suppliers


• Stage 5: Draft, Negotiate, and Sign the Contract
Source Of Information (SOI) & Process
• 1. Newspaper advertisements
• 2. Trade directories
• 3. Catalogue, price lists, etc.
• 4. Trade journals
• 5. Salesmen
• 6. Advertised tender
• 7. Telephone directories
• 8. Exchange of information between similar companies
• 9. Trade exhibitions and fairs
• 10. Personnel from other departments of the company
• 11. Inquiry
• 12. Yellow pages.
Supplier Appraisal & Vendor capability

• Supplier appraisal describes all those activities


undertaken to evaluate a potential source of
supply.
• The criteria considered will depend upon the nature
of the acquisition, but most evaluations explore
technical capability, capacity, quality of service,
and financial health.
Supplier evaluation can be based on a number of factors
 Production Capacity
All supplier evaluations should thoroughly appraise the supplier’s abilities and
limitations
 Quality
While it can be difficult to quantify the quality of a product, this should always
be a central component of a supplier evaluation
 Performance
Your company should ask as many questions as needed to determine whether
a supplier can handle your typical functions
 Risk
Every business invariably confronts some risks, but its suppliers should
actively work to minimize them throughout the supply chain.
 Environmental Impact
Sustainability is an essential element of a successful business for
Bidding Process

• The bidding process is used to select the most suitable


company to deliver a contract for goods or services.

• Within the public sector, the tender process is


mandatory for most contracts and aims to establish a
transparent and accessible process for all.
Steps for Bidding Process
• Step 1: Request For Proposals
Owners or project teams first need to issue a request for proposal (RFP) or
invitation to bid (ITB) to initiate the bidding process.
A tender manager then prepares a package that indicates specifics about the
project.
• Step 2: Bid Preparation Of Interested Parties
Once an RFP is issued, interested parties will begin to evaluate the proposal.
In this context, the project manager who prepares the bid is called a bid manager.
• Step 3: Bid Evaluation And Selection
• After collecting the bids, tender managers compare them against each other and
their requirements.
• Step 4: Contract Negotiation And Awarding
After picking the preferred vendor or service provider, the tendering organization
THANK YOU

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