GROUP 2 PRESENTORS

• Cañada, Jezreel
• Llagulao, Jonah
• Lemoran, Jimmyrose
• Lisbo, Francis Anthony
• Polancos, Roberto
• Valmores, Maria Judy
• Mandatory Sources of Supply – purchaser may be forced to use a
certain supply source
• Emergency Sources – a contingency development program should be
part of the overall role of purchasing; includes the establishment of a back-up
or alternative suppliers
• Small and Historically Underutilized Businesses – special programs
for minority and disadvantaged (socially and economically) suppliers to
continue to grow and develop in the public, private, and not-for-profit sectors
• Government legislation
• Social responsiveness
• Increase sales
• Alternative sources of supply
• Cooperative/ Leverage Buying – it is typically used by purchasers to
increase purchasing effectiveness, it is also involves joining two or more
organizations together for the purpose of preparing specifications and proposals,
collectively receiving bids, and making an award to the lowest responsible bidder
• Joint Ventures – a venture or investment undertaken by two or more
organizations may enable to partners to share costs, technology and know-how;
reduce financial, technical and political risks; and achieve economies of scale that
would not possible individual
• Internal vs. External Sources – an organization should consider which items
it buys and which it makes in terms of strategic and tactical considerations

Where in………………………………………
• Strategic considerations focus on what business does the organization want to
be in and what are its core competencies
• Tactical considerations focus on the operational effeciency of the organization
and may include the ff.
• Direct and indirect costs
• Integration of plant operations
• Availability of internal capacity
• Need for direct control over quality
• Confidentiality
• Reliability of available suppliers
• Volume requirements
• Fluctuations in the work force
• Effect on labor relations
• Survey Stage – the original survey of potential sources should overlook no
possiblities, provided they are reasonable accessible and there is some assurance
that they will meet required standards of quality, service and price. Sources of
information:
• Trade directories/exhibitions
• Telephone directories/yellow pages
• Internet
• Catalogue/buyers guide
• Trade directories of the world
• Thomas Register of American Manufactures
• Newspaper Ads
• Salesmen supplier/company files
• Purchasing department history files
• Purchasers of other companies
LOCATING SOURCES OF SUPPLY
• Buyer’s Guides – buyer’s guide, trade directories, and registers are reference
works that list manufactures and service providers and their addresses,
products/services, branches, financial condition, and other information relevant to
the buying decision process
• Business Directories – typically it is the list of organization names, addresses,
products and services sold as published directors local organizations in cities
• Telephone Directories – yellow pages give no information on the size of
financial standing of an organization but are well indexed and provide a starting
point.
• Chamber of Commerce- formed to promote the interests of the business
community.
• Trade and Professional Association- publish magazines, hold supplier
trade shows, and otherwise offer information on possible courses.
• Shows/ Exhibit- many industries conduct trade shows and exhibit on regional
and national basis.
• Trade Publications- Trade Journal that cover industries contain article of
interests as well as valuable resources of new and existing products or service
information including sources of supply.
• Colleagues/ Referrals/ Networking- Professionals known personally or
through professional associations can serve as another good source of supplier
information.
• Suppliers/ Salespersons- sales personnel are well informed about the
capabilities and features of their own products or services, and are also familiar
with similar and competitive products.
• Government Sources- a number of government agencies exists that
purchasers can refer to for information of sources of supply.
• International sources- Embassies, foreign trade missions, commercial
attaches, world trade centers, import brokers, and the International Federation of
Purchasing and Materials Management (IFPMW).
• Direct Marketing- Mails (postal or electronic) from suppliers regarding their
services or products; It is prudent to catalog, date, and file these, and refer them
later when such products are needed.
• Markets/ Merchandise Markets- Merchandise markets are sites where
retail buyers look for products from resellers (wholesalers) at the one location.
• Group Purchasing Organizations- Examples: Educational and Institutional
Cooperative Service Inc. of National Association of Educational Buyers; Purchasing
Connections, owned by the Health Resources Institute of Los Angeles; M.D. Buy line
of Dallas Texas.
• User Departments (internal departments)- checking with internal
customers (engineering and manufacturing) is often a useful way to obtain up-to-
date information about product areas not always available in the purchasing
department.
• Barter Organization- Swapping clearing houses for organizations distributing
goods or services in ways that do not involve cash payments.
• Bidder’s List- Government and business organizations maintain lists of suppliers
that maybe pre-qualified to bid.
• World Wide Web/ Internet- Provides purchases with several improvements
over other forms of communication.
• Competitor’s Practices- Insights that a purchaser may gain into competitor’s
practices may enable the purchaser to identify sources that the purchaser was
previously unaware of.
 INQUIRY STAGE
•Company profile and Strategy
•People
•Process
DEVELOPING MORE SPECIFIC INFORMATION
ON THE FF:
• Vendor’s production facilities and capacities
• Financial stability
• Product quality
• Technical competence
• Manufacturing efficiency
• General business policies
• Position in the industry
• Progressiveness
• Interests in the buyer’s order
• Cooperative attitude
NEGOTIATION SELECTION: FACTORS TO CONSIDER
IN SELECTION OF SOURCES OF SUPPLY:
• External Environment
• Internal Organizational Factors
• Product Factor
• Risk Factors
• Personal Factors
• Key sourcing strategies
 NEGOTIATION AND SELECTION STAGE:

•Establishing Price Terms, Conditions

•Issuing Purchase Order
 EXPERIENCE STAGE:
•Contract Administration
•Supplier Evaluation
 ELEMENTS OF GOOD SUPPLIER
RELATIONS:
• Completeness and Clarity of Communication
• Mutual understanding of the conditions and problems
• Mutual confidence
• Mutual Consideration
• Genuine interest in the mutual problem of the procurement and
supply
• Cooperation
• Continuous improvement of ordering methods and supplier
• Cultivation of personal contacts