Supply function in process of specifying requiements, main issues in Budgeting, Process of Requisitioning and Authorisation

What can happen when purchasing &
supply is not involved in specifying...
12
Urgent requirements 9
6
3


Ignoring good commercial practice, resulting
in:
 Restrictive specifications
 Expensive customised parts
 Sourcing difficulties
 Over-specifying
Lack of clarity for the supplier


ITC M2:U5:5.2-1

, How it should work!
 P&S should be informed & involved early
 Specifying should involve interaction at various
levels
 It should be a cross-functional process
 P&S should contribute its market knowledge…
 …and facilitate suppliers’
involvement to promote innovation & best
solutions


ITC M2:U5:5.2-2

, Action Point 5.2-1


Purchasing & supply in your company’s
specification process

• Is it involved? Why or why not?




• Which problems could it help to resolve if it were
more involved?




ITC M2:U5:5.2-3

, Taking account of all the needs
 User/consumers
 consumption habits and patterns
 influencing factors
 The case of machinery & equipment
 people who will install, operate & maintain it
 operating conditions
 types & availability of materials & other required
inputs
 compatibility with existing equipment



ITC M2:U5:5.2-4