Stockists and Preferred Vendors

Pl avid caps.

it all depends on the qulntity you procure, criticality of the component vis a vis your end product etc.

In our organisation, we do not encourage stockists to be in our vendor directory for items identified as critical and major and in a few minor components.

The reasons are manyfold

a) We need the OEM certificates and guarantees for the components (say SKF should certify for his bearings and not ABC Dealer on behalf of SKF)

b) The capability and other assessment is done for the OEM (say again SKF). However if a stockist is enrolled what prevents him from supply of PQR Bearings since it is his certificate that we are anyway going to accept.

c) In a few cases malpractices may take place.

A stockist/ dealer will be authorised by several companies and not the one whose product you want. I have seen (even in my company) artificial shortages created by them to sell a nonmoving item say you need brand A. He takes the order, part supplies as per schedule and then suddenly lands up and informs that the brand is unable to supply , you have to may be wait for ... weeks to get. Then may be offer, why don't you try this brand which is equally good and we will try to get some of them and blah blah blah.

If you are in urgency, you may capitulate (and other pressures come in as your manufacturing schedule gets disrupted- and end of the day any way you are making for some body isn't it ? He has not specified the approved vendor list isn't it ? so how does it matter if we use another ?

We end up in compromising our product, by misusing the tool that was to ensure the product quality - strong and scientific vendor evaluation.

Hope it clarifies (but in a certain case any way you can not help eg : our RTV sealants are through dealers only (Dow Corning does not supply directly to us) etc.

In these cases we get the dealer enrolled with a specific comment in our directory as in lieu of and get a official letter from OEM and never for critical or major categories.

In the government world, there is a list of vendors who qualify to provide a product that meets or exceeds a specification. It is up to the contract specialist to find the lowest price based on a bid from each qualified vendors.