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I used consider Quality --> velocity --> cost. I just want to know other people source the item from suppliers.
The answer depends on several things. Is Article urgently required depends upon a product or delivery within the terms. Or materials within the required specifications specific delivery. Are you allowed as alternatives to the same specifications.
The principle is less cost, and high specifications or specifications required then the speed of supply. The change considerations as stated above.
In some cases, requesting materials by air express mail.
Quality followed by Lead time.
Prominent is quality of material with desired lead time.
Cost saving is also very important factor for any company which is last but not least and create major impact on broader spectrum. Cost is based on various factors and on nature of product to be imported. Cost can be cotrolled by various modes. By diversifying requirment within2-3 vendors, competition will be get created among suppliers. Also by changing supplier from OEM manufacturer to renound alternate supplier of equivalent brand.
Quality1st!
That's really a complicated quetion to be answered. However i will try to answer under different scenerios.
1. If the item is related to food product than quality and lead time takes the drivers seat as both play an important part. For example milk though you may get good quality from Holland or Australia but you will not like to have after two months as by then you know it would have lost its freshness or the manufacturers have to use preservatives and chances of getting expired high.
2. If we are talking about the raw material, than quality team plays an important part. Though as per thumb rule one should not go for inferior quality of raw materials but if the quality team finding suggests that the quality of the raw materials are within the permissible level and the permutation says that we can still get the right quality finished products at a cheaper price than we can go with cost reduction.
3. One goes for higher lead time when the purchasing department finds a particular raw material really cheap compare to the local market and it does not cost a lot to store or there is monopoly. But in general I would say that Quality and Cost goes hand in hand and higher lead time takes a back seat. (Provided difference in lead time is very high)
It depends on your specific business requirements. There is no right or wrong answer.
As such, you set your own criteria in determining which will have a greater weightage of importance and you evaluate accordingly.
On a usual Quality is the first, but then Value for money stands firm. Incase delivery terms are more severe , it would overtake the rate factor.
Answer is subject to requirement and industry.
Ideally quality and lead-time would be first, but then it depends on how much of a price premium is the customer willing to pay for the high quality. Lead-time can also be expedited if the customer is willing to bear the premium.
Procurement is the art of balancing these three components (quality, price and availability) to meet the customer and stakeholders' expectations.
