Choose the BEST answer A household appliances manufacturer needs a new parts sup
ID: 2562881 • Letter: C
Question
Choose the BEST answer A household appliances manufacturer needs a new parts supplier for its washers and dryers. The manufacturer advertises for competitive bids, and four potential suppliers submit their proposals. The manufacturer walks through each of the proposals and discovers two potential suppliers who offers substantial discounts while a third supplier offers less of a discount but better support services. After considering all the proposals, the appliances manufacturer decides on a supplier and begins negotiating the terms of its contract with the supplier. This entire procurement process is known as a O competitive bid processersExplanation / Answer
The entire process is a ‘Supplier Selection Process’.
Explanation:
All kinds of manufacturers need suppliers of raw materials or sub-parts and expend heavily in the supplier selection process. The process primarily aims to establishing contracts with suppliers of high quality products. The key emphasis of any manufacturer in the process would be to select from available list of suppliers or competitive proposals that meet their financial and product quality standards.
Besides the financial and product quality standards, the supplier selection process also focuses on choosing reliable suppliers who adhere to timely supply of materials or parts. The selection process also considers the amount of discount offered, proximity of supplier, product quality and availability on a regular basis.
The given situation resembles the supplier selection process as the specific manufacturer advertises for competitive bids and walks through all the available proposals to choose a suitable supplier of a washers and dryers. Hence, the answer is supplier selection process.
The other options, product specification process and competitive bid processes focus on the areas of product quality and performance requirements during production and bidding to procure orders for the product manufactured, respectively.
Product specification essentially aims to provide a set of requirements gathered from market study – user requirements and business needs to help product teams to make informed decisions in the process of developing and designing a product.
Competitive bidding is a process of contract awards. The interested suppliers are asked to participate and submit a information about product specifications and prices. The focus would be on encouraging suppliers to participate and offer competitive prices for quality products. The process is essentially a sub-part of supplier selection process.