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The bidders are short listed based on fulfilling the quality and certification requirements, acceptable engineering proposal, cost and delivery.

 

It is always recommended to have an internal meeting between client’s package team members when short listing suppliers. This way a collective decision is made and suppliers are prioritized.

 

Some companies have checklists and a Point Based System, ranking the suppliers based on the highest marks given by the buyer, quality and package engineer.

 

Price, delivery, previous work experience with supplier, supplier’s reputation, supplier’s relevant certifications, supplier compliance with the data sheet; nature of deviations requested are important parameter while selecting and ranking suppliers.

 

Normally, three suppliers are selected and are invited for a face to face pre-purchase or Bid Clarification Meeting (BCM) at client’s premises. Supplier is briefed about the package requirements to ensure all stake holders are on the same page.

 

When a supplier is selected, then, the Purchase Order (PO) together with any approved deviation request by vendor is finalized, signed by both the purchaser and the supplier and attached to the purchase order as part of the contract which is a legally binding document.

 

 

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