Vendors Development

a) To identify the items to be manufactured by vendors, for example, battery, tire, silencer, seat, silencer, sprocket, chain, side cover, side stand, leg guard, etc. These items can be either a difficult or a simple. b) The main manufacturers usually do not want to manufacture all the items by themselves. So, they develop vendors to manufacture those items by vendors. Sometimes a main manufacturing company does not want to manufacture items which require special facilities that the company does not have. In that case, the main company develops vendors to manufacture those items. c) Other scenario is deferent, sometimes it is seen that the main manufacturing company has got all facilities which are required for manufacturing certain items. But still the company wants the items to be manufactured by a vendor. This is because the main company wants to avoid operational and managerial hassles. d) Other reason of development of vendors is to ensure quality. Vendors generally engaged with some specific items, so in course of time, they develop expertise, efficiency, productivity increase, competitiveness enhancement and quality assurance. e) Normally, the main company renders all sorts of supports to the vendors in the area of R&D, innovation management, qualitative training, infrastructure development, technology transfer and access to financial. f) In vendor development modality, the basic planning is initiated by the main manufacturing company as per their requirements. The requirements correspond to configuration, quality of the constituents, functional attributes, durability and production process. g) After inception of the vendor concept, the materialization of the idea is implemented jointly by the vendor and main manufacturing company. h) A length of contract is decided by both the parties (generally 5-10 years). During the operation, all sorts of assistance and cooperation are continued. i) The activities like training are specially emphasized. Time-to-time on the job and off the job training is rendered. WPL (Work Place Learning) program is also vital for such type of relationship between the parties. TVET (Technical and Vocational Education and Training) is another modality of learning by a vendor.

l) To encourage development of vendors within the country. These accreditations proliferate export potential of local components. which are mentioned in the contract between two parties. In some cases. k) Accreditation and certification: The vendors generally procure certificates (national and international) on proactive basis. Thus the local manufacturers will be able to buy items at lower price. similar type of work is done by the vendors in case of changes of modes of certain products suggested by the main company requirements change of price and training programs. . this policy guidelines states that the products sold by vendors to a local manufacturers to be exempted from VAT.Vendors Development j) Usually. it is seen that the main company renders all sorts of assistance to procure international certification.

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