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Need For Effective Vendor Selection & Rating In An Organization
CHAPTER ONE -- [Total Page(s) 4]
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CHAPTER ONE
1.0 INTRODUCTION
Nestle Food Plc, case
study of my project topic is well known for it vendor selection and
rating. The study of purchasing and supply management can not be
complete without proper selection of vendor and rating of their
performance.
The progressive manufacturing industries realizing the
contribution of supplies department of profit, have this department to
make the selection of supplier in order to maintain company’s own
competitiveness which will also enhance better supplier relationship,
reliable supplier performance, easier administration and fewer supply
problems.
Vendor selection and rating is becoming of vital importance
in every manufacturing organization today in that it need for effective
cannot be over looked of every manufacturing company’s budget. Is on
materials, it is therefore very necessary that materials which meet
organization taste as regards to sources, quality, price and delivery be
given consideration. Prior to this, it is therefore of great importance
to ensure that proper supplier are selected and rated according to
their performance so as to ensure that proper suppliers are selected and
rated according to their performance so as to ensure the need of the
organization. It is therefore the responsibility of purchasing and
supply department to select the best supplier, identify the major
sources of information about potential supplier, through the use of
trade journals, exhibitions, sales representative, colleagues in the
company, professional associates, chambers of commerce and costly
international sources, these sources of information can be very useful
to the success of vendor selection.
The organization must function in
one of the most sensitive areas of vendor performance and rating. LAMER
LEE JE AND DONALD W. DOBBLER, in their text said upon completing of
list of all potential suppliers, a buyers (firm) next step is to
evaluate each of these suppliers individually. By process of
elimination, a selected list of vendors negotiate or solicit bids.
The
vendor list should be comprehensive enough to bring to best to every of
competition desired, price technological competition service
competition etc.
Evaluation of company’s vendors is considered as an
effective tool for improving their ability to serve more satisfactorily
as a basis for making future purchasing decision.
Finally, when
suppliers have been selected, organizations have ensured that they
maintain and create a good relationship with their suppliers as to
maximize profit.
Management must therefore ensure that proper
supplier are selected and rated periodically in order to contribute to
the profit ability of the organization so that purchasing and supply
department will be accorded a high degree of honour.
1.2 STATEMENT OF PROBLEM
1. The organization does not attach a lot of importance to vendor selection and rating.
2. There no qualified personnel available to handle the job vendor selection and rating in the organization.
3. The firm fears if is very costly to handle the issue of vendor selection and rating.
4. The firm’s organization structure has negative effect on the effective performances of vendor selection and rating.
CHAPTER ONE -- [Total Page(s) 4]
Page 1 of 4
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ABSRACT - [ Total Page(s): 1 ]This study is a survey on the need for effective of vendor selection and
rating of some Nigeria companies, a case study of Nestle Food Nigeria
Plc.The study is aimed at identifying, assessing and analyzing the
various available methods of selecting suppliers in purchasing
department, for the best of store keeping and material handling.The study also includes the examination of roles of sales strategies and improvement on the prospect.Primary
data was collected by the means of questionn ... Continue reading---
