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Sourcing Decision And Its Effects On Material Availability
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1.6 Research Question
The research questions that were adopted for this research work are:
i) What are the criteria in use for selection of suppliers in 7up bottling company plc?
ii) What is the sourcing policy in use by the organization?
iii) What method is employed by the organization in evaluating suppliers?
iv) What are the challenges faced by the organization when sourcing for materials?
v) When strategies the organization adjourned to be the most effective in managing supplier relationship.
1.7 Definition of Terms
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Sourcing: Is a process through which buyers seeks, survey and evaluate
suppliers, and determine policies relating to those who will most
suitably meet the requirements of the organization.
- Core
Competence: Is the collective learning in the organization, especially
how to coordinate diverse production skills and integrate multiple
streams of technologies.
- Insourcing: Is the process by which
an organization takes responsibility for providing services and
conducting its operations in-house and in other location but by its own
staff.
- Outsourcing: Is a process by which an organization
contracts our services and operation that are usually done n-house to
another firms that can be done them better, cheaper or faster.
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Negotiation: Is the art and science of arriving at a common
understanding through bargaining on the essentials of contract, such as
price, quality quantity, delivery time, terms and conditions of service
etc.
- Bidding: Is a purchasing procedure by which potential
suppliers are invited without collusion to present to an organization, a
firm, a clear offer of price, terms and conditions which upon
acceptance shall be the basis of the subsequent contract for the supply
of the intended goods and services or the execution of projects.
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Quality: Kotler and Armstrong (2004) define quality as the ability of a
product or service to perform its functions, which includes overall
durability, reliability, precision, ease of maintenance and repair and
other customer valued attributes.
- Quality: Kotler and
Armstrong (2004) define quality as the ability of a product or service
to perform its functions, which includes overall durability,
reliability, precision, ease of maintenance and repair and other
customer valued attributes.
- Quantity: This entails having
the right amount of materials, tools components, parts required for
replenishment of the store and production purposes.
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Performance: This relates to product’s operating/features and how well
the product is able to the task it was originally designed to and how it
is able to satisfy intended needs.
- Material: Is anything
that can be offered to the market for attention, acquisition, use or for
consumption purposes which might be capable of satisfying needs.
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Leasing: Leasing is a contract by which one party (lessor) gives
another party (lessee) the use and possession of an asset or property
for a specific period of time and for fixed payments.
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