Sourcing decisions

Methods of Description
 Methods of Description
The description of any item or product must be accurate
and detailed so that the supplier clearly understands as to
what is needed.

1. Description by Brand
• This particular method is based upon the reliability,
integrity and reputation of the brands of the vendors.
• The buyer accepts the opinion that the supplier is able
to maintain his goodwill in terms of brand management.
 Methods of Description
2.Description by Specification
• It is one of the most widely used methods of
description in which buyers make all efforts to
present detailed specifications.
• It allows the possibility of measurement and
control of supplied items.
• This method is crucial in eliminating waste and
delays.
• However, it is not always possible to create
adequate specifications.
• Such specifications can be based on chemical or
physical attributes, materials and methods of
production and performance.
 Methods of Description
3. Description by Engineering Drawings
• This comparatively expensive type of description
• is used in the purchase of several items, for example, electronics and
construction etc.
• Description by engineering drawings relies on the dimension sheet etc.
• It is one of the most accurate methods of description.
• It is suitable when we are purchasing items which require close perfection or
tolerance.
 Methods of Description
4.Miscellaneous Methods
• These methods may include description by market grades and description by
sample etc.
• Description by market grades is often used for the purchase of primary
materials, for example, wheat and cotton.
• It is a satisfactory method for many items that are graded by the market.
• On the other hand, sometimes buyers provide samples to the suppliers for
the delivery of similar items.
• Or Equal In this form of description, the buyer transfers the responsibility of
creating equality to the bidder.