PROCUREMENT, COMPETITIVE BIDDING AND CONTRACT

MANAGEMENT

IBM – 1003 – 24W – 005.

INSTRUCTOR: PROF. VALERIE OJO

ASSIGNMENT: PROBLEM - 01

DONE BY: GROUP 06

ALEKYA KUMARI PULUGU 0837666

SAURANSH Y RAJVANSHI 0837016
SHIVANI PARMAR 0841673

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 Table of Contents

REQUEST FOR QUOTATION (RFQ) FOR SUPPLIER 1:...................................................................3

REQUEST FOR QUOTATION (RFQ) FOR SUPPLIER 2:...................................................................6
“QUALIFIED” SOURCE ACCORDING TO OUR TEAM. FOR INSTANCE THE CRITERIA
ARE WE ARE USING TO QUALIFY YOUR SOURCES AS SUPPLIERS THAT WILL MEET
YOUR REQUIREMENTS........................................................................................................................10
OUR RECOMMENDATIONS AS TO HOW THIS PURCHASE CAN BE A MORE “EFFECTIVE
BUY”...........................................................................................................................................................13
REFERENCES...........................................................................................................................................17

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 REQUEST FOR QUOTATION (RFQ) FOR SUPPLIER 1:
REQUEST FOR QUOTE

To: Glentech Aluminiums and steels

Subject: Request for Quotation - Boat Lift Components

Dear Charles fleming,

Better Boat Bunks (BBB) is currently sourcing components to manufacture a batch of 100 boat

lifts. As a reputable supplier in the industry, BBB is interested in obtaining competitive pricing

BBB values quality, reliability, and competitive pricing in its suppliers. Therefore, we kindly

request that you provide your quotation for the specified quantities and specifications.

Additional Information:

Component/Part Quantity Specification Material

Round Aluminum 22,600 feet 3/8” diameter x 10’ 6061 Aluminum

Tube (6061 Grade) for Crank Wheel

tube to be bent to

18” radius circle

Square Aluminum 25,600 feet 1.5 “ SQ x .188” 6061 Aluminum

Tube (6061 Grade) thick x 16’ long

3|Page frame tube

 o This round tube made of aluminum is one of the main materials necessary for assembling

the paddle wheel. We need to utilize aluminum tubing of good quality and need to be sure

that the specifications and dimensions remain consistent for bending purpose and also

durability in marine environment. What alloy is used, how well it is tolerated, and the

surface finishes options are the information that you need to disclose.

o The aluminum square tube is the core constructor frame of our boat lift, which serves its

main purpose to provide sturdiness and stability on the system. We consider aluminum

pipes to be highly resistant against corrosion, weldability, and strength and therefore

adhere to industry performance standards. Kindly have details on extrusion process,

treatment options on surface and test results or certifications that are available.

Please ensure that your quotation includes the following details:

I. Price per unit for each component

II. Total price for the specified quantity of each component

III. Delivery lead time

IV. Payment terms

V. Any applicable taxes or fees

VI. Terms and conditions of sale

We would appreciate your prompt response to this RFQ. If you require any further information

or clarification regarding the specifications, please do not hesitate to contact us.

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Thank you for considering BBB as a potential customer. We look forward to receiving your

competitive quotation.

Sincerely,

Shawn Roberts

(Purchasing Manager)

Better Boat Bunks

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 REQUEST FOR QUOTE

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 REQUEST FOR QUOTATION (RFQ) FOR SUPPLIER 2:

To: Aromax Plastics Inc.

Subject: Request for Quotation - Boat Lift Components

Dear Willis Huntley,

Better Boat Bunks (BBB) is currently sourcing components to manufacture a batch of 100 boat

lifts. As a reputable supplier in the industry, BBB is interested in obtaining competitive pricing

for the following components:

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 Component/Part Quantity Specification Material

Plastic (PVC) 800 wheels 12” diameter PVC -

Wheels (4 per wheels to provide

bunk) for mobility of

bunk

Marine Grade 38,400 square feet Square feet of Marine Grade

Carpet carpet for covering

both of the two

supports on one lift

Pressure Treated 400 pieces 2” x 6” x 16’ -

Lumber for Bunk pressure treated

(under carpet) lumber (to be cut in

½ (1’ x 3’ x 8’) for

PWC) for bunks

Galvanized bolts 26.000 0.5” x 3” -

galvanized bolts for

assembly

Galvanized nuts 26,000 0.5 “ galvanized -

bolts for assembly

Galvanized washers 26,000 0.5 “ galvanized -

washers for
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assembly
Additional Information:

o Plastic (PVC) wheels which we use in our boat lifts are fundamental in relation to the

utility of our boat lifts as they improve the mobility of our customers and provide ease of

use. Among our wheel components, we pay attention for time-resistant and resistance to

corrosions in order to provide long-term performance in the marine environment. By all

means, breakdown the specifications and spare parts materials information you provide

for the wheels you propose.

o The marin grade carpet is an indispensable attribute of our boat lifts that protects the

underwater surface of the vessel and guarantee the flawless functioning. To be able to use

our carpet in such conditions, we rely on a material that is resistant to mold, mildew, and

UV rays degradation, and prevents growth of bacteria. Such conditions include long‐term

direct exposure to seawater and a strong sunlight exposure. Please tell me the materials

type, thickness, and what colors choices there are.

o Our pressure treated lumber is the heavy-duty support for our boat lifts, enduring the

weight of the boats or the PWCs bolstering their stability and strength. We need not

worry about marine timbers because they go through some chemical treatments that make

them resistant to wetness, decay, and rot, consequently increase their durability. Please

enlighten us on the log processing procedure, lumber grades, and any certification

provided.

BBB values quality, reliability, and competitive pricing in its suppliers. Therefore, we kindly

request that you provide your quotation for the specified quantities and specifications.

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Please ensure that your quotation includes the following details:

I. Price per unit for each component

II. Total price for the specified quantity of each component

III. Delivery lead time

IV. Payment terms

V. Any applicable taxes or fees

VI. Terms and conditions of sale

We would appreciate your prompt response to this RFQ. If you require any further information

or clarification regarding the specifications, please do not hesitate to contact us.

Thank you for considering BBB as a potential customer. We look forward to receiving your

competitive quotation.

Sincerely,

Shawn Roberts

(Purchasing Manager)

Better Boat Bunk

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 “QUALIFIED” SOURCE ACCORDING TO OUR TEAM. FOR INSTANCE THE

CRITERIA ARE WE ARE USING TO QUALIFY YOUR SOURCES AS SUPPLIERS

THAT WILL MEET YOUR REQUIREMENTS.

To identify and qualify sources as suppliers for Better Boat Bunks (BBB), Purchasing team

should have consider several criteria to ensure that the selected suppliers meet our requirements

and align with our company's objectives. These criteria are carefully evaluated to assess the

suitability, reliability, and performance of potential suppliers. Here are the key criteria we use to

qualify our sources:

Quality Assurance:

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  BBB concentrates on reliable suppliers who implement robust quality assurance

processes so that they can deliver inventories of excellent parts consistently. Suppliers

must follow industrial standards and regulation that cover manufacturing of the boat lifts

parts.

 The criteria include standards such as ISO 9001 which are the indicators that an

organization has the capability to satisfy the quality management systems. BBB, too, not

only assess the past performance but it also is concerned with vendors' capability in

assembling components that meet or exceed specified requirements.

Technical Expertise and Capability:

 BBB considers suppliers whose capabilities and technical expertise enable them to obtain

the demanding manufacturing specifications for the complex components. This is through

establishment of the sophisticated manufacturing facilities, and top of the class facilities

and technically qualified personnel.

 Evaluation criteria may be the competence of supplier to produce components like the

ones considering are, the availability of engineering support and the ability to provide

individual solutions based on the unique needs of BBB.

Reliability and On-Time Delivery:

 Precise delivery time becomes a crucial element for BBB to go by the production

schedule and customer promises. Suppliers should ensure their delivery record by

providing data on the reliability and consistency of timely delivery to the buyer.

 BBB assesses vendors' delivery performance, which is comprised of several factors such

as delivery performance, lead times, fill rates, and response time to changing demand.

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 Suppliers should do their best to have supply chain and logistics systems that are strong

enough to meet deadlines for deliveries of components.

Cost Competitiveness:

 The cost is eclipsed by the importance of BBB values which extend beyond the cost to

overall value. The suppliers must come up and bring competitive prices that are in line

with the present market trends in terms of quality of goods and service they offer.

 BBB analyzes suppliers billing structures, total cost of ownership and readiness of

negotiations for supportable conditions. Maximum of the long-term cost savings and total

value optimization is at the frontline of the sake of the short-term value reduction.

Financial Stability:

 BBB tries to cooperate with vendors that have a proven track record of strong financial

stability. Financial sustainability serves as a fundamental requirement to assure

uninterrupted supply, minimize downtime due to the imbalances, and protect against

suppliers’ bankruptcy. We evaluate financial condition of suppliers by means of financial

statements, credit reports, and reviews from relevant sources.

Communication and Responsiveness:

 Communication and responsiveness are essential elements that enable successful

collaboration between BBB and its suppliers as the key parties involved in the process.

What we also appreciate in our suppliers is having clear and open channels of

communication, answering promptly questions and complaints, and proactively notifying

us when it is possible about any issues or changes that may affect deliveries or quality.

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Environmental and Social Responsibility:

 BBB prioritizes sustainability and has implemented ethical sourcing policies and

practices. We focus on the suppliers who satisfy environmental sustainability, ethical

labor conditions, and adhere to the rules and legislations that are relevant to the business.

Suppliers are expected to maintain their social responsibility and conduct their entire

supply chain with a mind to environment.

OUR RECOMMENDATIONS AS TO HOW THIS PURCHASE CAN BE A MORE

“EFFECTIVE BUY”.

Here are recommendations to make the purchase of components for Better Boat Bunks (BBB)

more effective:recommendations to make the purchase of components for Better Boat Bunks

(BBB) more effective:

Consolidate Purchases with Fewer Suppliers:

 BBB will be able to create a standardized purchase process with a fewer number of

assured suppliers which will simplify the procurement processes and minimize the

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 administrative costs. Similarly, this strategy will give BBB the chance to achieve buying

power with the suppliers and also to enjoy more favorable relationships which shall spur

better service levels and responsiveness.

Long-Term Supplier Partnerships:

 Ongoing dialogue and the creation of long-term bonds with the prominent suppliers

enhance trust, cooperation, and mutual understanding. BBB should invest time and effort

in the creation of strategic alliances/ partnerships with suppliers who share these values

and objectives. Such partnerships, in their turn, prompt the suppliers to take into account

BBB's requirements, offer preferential pricing, and constantly operate over the

challenges.

Implement Supplier Collaboration Programs:

 Collaborative programs with suppliers allow both parties to address challenges together,

generate novel solutions, and strive for constant improvements. Through joint strategic

forums, BBB can draw upon the suppliers’ wealth of knowledge and experience to

generate new product design, cost reduction and process improvement. The constant

communication and feedback system are the key elements that cemented the success of

such programs.

Negotiate Favorable Contract Terms:

 BBB's purchasing group needs to develop smart contract terms with suppliers in order to

obtain the best deal and to avoid possible risks for the organization. This involves, among

other things, the negotiation of the pricing agreements, payment mechanisms, delivery

deadlines, and warranty provisions in line with those of BBB. Transparent and well-

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 defined contract terms minimize the chances of disagreements and allow the parties to

understoon what they are required to do.

Implement Just-in-Time (JIT) Inventory Practices:Implement Just-in-Time (JIT)

Inventory Practices:

 Implementing JIT (just-in-time) inventory management processes helps BBB to maintain

low-level stock, cut down carrying costs and prevent any possible waste. Through

carefully syncing up delivery of whole parts with manufacturing plans, BBB will be able

to run with a lean inventory while still ensuring the flow of supply. JIT methodology

necessitates close planning and supplier coordination with accurate demand prediction, as

it is the most effective way to prevent stockouts.

Leverage Technology for Procurement Optimization:Leverage Technology for

Procurement Optimization:

 The devotion of resources into procurement management software and digital platforms

does not just help BBB to simplify its purchasing procedures, but as well it increases the

visibility into supply chain operations and allows it to make data-driven decisions. The

machines can process the order generating, invoice processing, and supplier performance

tracking which augment efficiency and reduce the mistakes caused by humans.

Implement Supplier Performance Monitoring:

 Establishing criteria for performance (KPIs) which monitor the suppliers’ effectiveness is

a way for BBB to assess the efficiency of the supplier and detect the areas where

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 improvement is needed. Metrics, such as on-time delivery, product quality,

responsiveness and the cost saving achieved by supplier collaboration initiatives, open a

window into the suppliers’ capability and performance. Recurring feedback and review

sessions help sustain accountability and bring out positive progression.

Promote Sustainability and Ethical Sourcing Practices:Promote Sustainability and Ethical

Sourcing Practices:

 BBB should give preference to suppliers who are transparent in their environmental

goals, commit to sustainability, and are ethical in their sourcing of raw materials. Aiding

supplier's initiatives to reduce carbon emissions, maintain ethical labor conditions and be

compliant with the obligatory regulations and standards is in line with the core values of

BBB as an organization and makes the company known as an ethical business partner.

Continuous Evaluation and Improvement:

 On-going examination of not only the procurement process and supplier relationships,

but also the cost saving option is required for the continued improvement. We will take

into consideration the feedback from human resources and suppliers, and then search for

the possibilities and ways for optimization of the process. Finally, we will make the

appropriate actions to correct any mistakes, if necessary. Continuous performance review,

benchmarking, and best practice sharing of the industry sessions form the platform for

ongoing learning and improvement of the operations.

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 REFERENCES

 "4 Finding, Evaluating and Selecting Suppliers - Open Library Publishing ...."

https://ecampusontario.pressbooks.pub/procurement2021/chapter/chapter-3-finding-

evaluating-and-selecting-suppliers/.

 "How to Choose the Right Supplier for Your Business." 09 Nov. 2020,

https://www.business.org/finance/inventory-management/how-to-choose-the-right-

supplier-for-your-business/.

 "13 Sourcing Tips To Identify New Quality Suppliers - Thomasnet." 04 Aug. 2020,

https://blog.thomasnet.com/how-to-identify-a-quality-supplier.

 "The Ultimate Bunk Board Replacement Solution."

https://www.ultimatebunkboards.com/.

 "12 Tips to Identify Quality Suppliers - Inbound Logistics."

https://www.inboundlogistics.com/articles/12-tips-to-identify-quality-suppliers/.

 "Supplier Consolidation: What It Is, Benefits, and Risks."

https://planergy.com/blog/supplier-consolidation/.

 "Reduce Supply Chain Costs with Consolidated Procurement Strategies ...."

https://www.inboundlogistics.com/articles/reduce-supply-chain-costs-with-consolidated-

procurement-strategies/.

 "Supplier Consolidation: Benefits, Challenges, and Tips - LinkedIn."

https://www.linkedin.com/advice/3/what-key-benefits-challenges-supplier-consolidation.

 "Benefits of Supplier Consolidation | Specialty Resources Inc.." 01 Jun. 2017,

https://specialtyresources.com/company/blog/benefits-supplier-consolidation/.

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  "Procurement & Supplier Consolidation Guide: Benefits & Strategy - Verusen." 03 Jan.

2024, https://verusen.com/a-guide-to-mro-supplier-consolidation/.

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