Analysis of Supplies

Lecture 3: Analysis of
supplies
AHAD NAZIR
Agenda
Basics of specification of requirements
Types of requirements
Purchase specifications including through brand names, standards, samples, compositions, etc.
Forecasting of demand and supply
Analysis of delivery requirements
Analysis of supplier service and responsiveness

Specifying requirements
Types of Requirements
Operational requirements (needed to run day-to-day business)
Capital requirements
Types of Requirements
Production requirements (directly related to producing the goods

or services)
Non-production requirements
Purchase Specifications (Discussion
Points)
Specifying the required product/service
Product specification VS service specification
Over- and under-specifying are equally bad!!!

Elements that are required to specify the
requirements
Functionality Design Capacity Performance Recyclability
Safety
Size Colour Durability Flexibility
requirements
Conditions of
Labeling ....
use
Specification Type Where Appropriate
Brand or trade name • For commonly used item.
• When related to a brand name will differentiate your product.
• When quality is more important than cost.
Supplier/industry codes • For simple items.

• To facilitate purchases from a particular supplier.
Samples • When it is difficult to assess quality prior to purchase.

• When showing what is required is easier than describing it in writing or otherwise
specifying it.
Technical specification • When suppliers do not possess the required design expertise.
• Where the organization wishes to keep the design expertise in-house
• Where there are complex interfaces with existing equipment.
• Where the buyer is prepared to accept the risk of the design not resulting in the
required performance.
Composition specification • For products as raw materials, commodities and food products.
• When safety or enviornmental considerations are critical.
• When performance depends on composition.
Functional/performance specification • When suppliers have greater expertise than the purchaser.
• Where innovation is valued.
• When technology is changing rapidly in the supplying industry.
Quantity Forecasting
Demand and Supply Forecasting
methodology: Qualitative
Expert opinion: Market testing

• Scenarios (best, • Sample of
worst and likely) population
• Delphi technique • Trial sales
Demand and Supply Forecasting
methodology: Quantitative
Use past demand data to generate a

Time series analysis forecast - works well for short-term
forecasts.
Establishing a cause-effect relationship

Causal methods between independent variables and the
demand for a product. Linear regression!
Quantitative methods are
not covered here because
the same methods will be
covered in Project
monitoring, evaluation, and
controlling management
course in the same
semester
Quantity Forecasting
Specifying delivery: Times & Schedules
When & where something is The lead-time available to the Reinforce through contractual
needed supplier terms & arrangements
Specifying delivery: Point of delivery
Full address Contact person Restrictions on deliveries Access to premises Supervision and confidentiality
(timings, weight & size of (services)
delivery vehicles and
packages)
Specifying delivery: Transport &
packing
Consider damage, time Nature of packing Special transport

and cost required arrangements
Specifying supplier service & responsiveness
Specifying supplier service &
responsiveness
Supplier responsiveness Technical support Maintenance & repair

Levels of service Technical supervision/ assistance Maximum time frames for repair
& training & delivery of spare parts, etc.
Other information
Other information
Contact Basis for Background
Policies Legislation
information evaluating offers information
• Technical, • To help • Safety & • Information on • Requirements
purchasing & suppliers to environmental the buying related to
finance optimize their policies company hazardous
contact designs • Statement of goods, health
persons • Scope of intent & safety,
supplier’s environmental
responsibilities protection,
import
restrictions...
Thank
you

Analysis of Supplies

Uploaded by

Copyright:

Available Formats

Analysis of Supplies

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Analysis of Supplies

Uploaded by

Copyright:

Available Formats

Lecture 3: Analysis of

Forecasting of demand and supply

Analysis of delivery requirements

Analysis of supplier service and responsiveness

Operational requirements (needed to run day-to-day business)

Production requirements (directly related to producing the goods

Specifying the required product/service

Product specification VS service specification

Over- and under-specifying are equally bad!!!

Functionality Design Capacity Performance Recyclability

Supplier/industry codes • For simple items.

Samples • When it is difficult to assess quality prior to purchase.

Expert opinion: Market testing

Use past demand data to generate a

Establishing a cause-effect relationship

Consider damage, time Nature of packing Special transport

Supplier responsiveness Technical support Maintenance & repair

You might also like