Discuss the Role of Suppliers

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The Answer is Goods or services that are commonly available with little variation in quality or availability are called commodities. Purchasing commodities from suppliers focuses on achieving the lowest cost. Cost of commodities can often be found in the suppliers' catalog. On smaller, less complex projects, supplies can be purchased as needed from the supplier's catalog. Additional cost savings are often available if large quantities of a commodity are purchased from the same supplier. On larger, more complex projects, a list of materials and supplies is developed from the project cost estimate. This list is provided to suppliers as a request for quote RFQ) and the suppliers respond with their lowest price. Many organizations maintain a list of suppliers that meet the organization's requirements which usually include the proven ability to meet the quality and schedule specifications. The project team develops and sends an RFQ to the identified qualified suppliers. The suppliers then develop a quote that lists the specific materials to be provided and the price for each and a schedule for delivery. The project team evaluates each quote from suppliers and determines that the supplier bid meets all the requirements and in most cases, the supplier with the lowest price will be awarded the bid.

Discuss the Role of Suppliers

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Discuss the Role of Suppliers

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Correct Answer:VerifiedShow Answer

Correct Answer:
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