what are the stages of ordering?
1) user need
2) raise requisition
3) approved process
4) issue PO
5) receive goods/service
6) approve
... [Show More] invoice
what are the stages of sourcing?
1) understand the need
2) develop strategy
3) raise requisition
4) source suppliers
5) issue ITT/RFQ
6) negotiate and award contract
7) SRM/contract management
in what locations can sourcing take place?
- localised
- regional
- national
- global
what factors does the buyer need to consider when deciding which sourcing is best?
- urgency of need
- volume of need
- quality of need
- budget allocated to need
what are the elements needed for a contract to be legally binding?
- intention
- capacity
- offer
- consideration
- acceptance
what is an invitation to treat?
an expression of willingness to negotiate with the intention of forming a contract
what is a standard term contract?
a pre-written contract that leaves little or no room for negotiation on terms between the parties
what is force majeure?
circumstances that cannot be foreseen which prevent a contract from being fulfilled
what elements are included in a standard term contract?
- definitions
- general terms
- commercial provisions
- secondary commercial provisions
- standard clauses
what are the advantages of standard contracts?
- saves time
- saves money
- widely accepted and understood by both buyers and suppliers
what are the disadvantages of standard contracts?
- bespoke terms may not be included
- better terms could be negotiated
- buyers do not get experience in creating contracts
what are express terms?
terms that are agreed between the parties negotiating the contract
what is included in express terms?
- price
- spec
- payment terms
- warranties
- conditions
- retention of title
- damages
- exclusion clauses
- indemnity clauses
- breaches
- termination
- conflict resolution
what factors can affect price?
- profit levels of the supplier
- budget of the buyer
- currency fluctuations
- economic market
- quality
- volume
- supply and demand
- material availability
- skill of the workforce
- immediacy of the requirement
what tactics can a buyer use to create the ideal terms for their organisation?
- take it or leave it
- good cop, bad cop
- salami
- one last thing
- russian front
- mother hubbard
- log rolling
what could be included in terms for the specification?
- technical drawings
- industry standards
- recipes or formulae
- brands
- samples [Show Less]