Identification and Specification
Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages.
One needs to consider these two things when carrying out business with a customer in the takeover period. These are considered as identification of need and converting those needs into a commercial equivalent. The identification of needs is a process that involves determining the desires of a customer in a given product. These needs are often never technical but portray the customer’s thoughts on the product itself. During the acquisition process, there is a need for comparison with other products to enable suppliers to understand what is required and allow the manufacturers to make those products better.
It is paramount to separate the identification of needs and commercial equivalents into two steps. This enables an organization to identify particular needs and determine the various ways the needs can be met. As we have in our text, the identification of needs can be determined by the nature size and the company location. (Johnson, 2010). The ability to identify these needs could, to a great extent, lower the cost of production and allow for efficient solutions. Taking that into account, when these needs are converted into commercial equivalents, then suppliers can know what is required.
Interpret the value to the organization when early supplier involvement (ESI) is implemented effectively.
Organizations can procure supplies that are of good value through Early Supply Involvement (ESI). If this becomes a habit for many organizations, the supplier will be able to collaborate with manufacturers. This allows most of the companies to share information regarding technical skills, experiences, and capabilities. Kaso Plastics employed this method of involving the suppliers early to assist in the designing of the product. As a result, there is a deeper understanding of manufacturability’s capabilities and improvement by selecting the best materials (Johnson, 2010).
Examine the advantages and disadvantages of specifying by performance.
There are some clear advantages and disadvantages to specifying performance. Organizations can relay the information related to the products’ requirements to not only the supplier but also the manufacturer. This is an important advantage, especially because of the need for manufacturers to evaluate their products’ acceptability, which will be crucial in determining how those products will be made. A demerit is if these requirements are not explained precisely, then there is little room for error left during these products’ manufacturing.
The Federal Highway Administration Specification, for instance, gives an advantage as there a lot of control given to the State Department of Transport with regards to work and material. The steps that are to be followed during construction are included in specifications, resulting in satisfactory quality. One downside is that the contractor must follow the means and method specified in the specifications to do a particular work even though other methods might achieve the same results.
Describe how a supply professional understands strategic requirements.
Appreciation for strategic requirements is vital for the supply professionals, and this understanding must be on resale, parts, maintenance, raw, and semi-processed material and capital and service (Jackson,2012). The financial growth of a company should be the central focus of supply professionals, and they should also look for opportunities that can contribute to the company’s growth. The description and specifications should be accurate and detailed, and this is the duty of these professionals. They should be able to scan for other options that may be available and have the ability to benefit and add value to the organization.
References
Johnson, P. F., Leenders, M. R., & Flynn, A. E. (2010). Purchasing and Supply Management
(14th ed.). Boston: McGraw-Hill Irwin.