Need a rewrite on purchasing &Vendor Management week two

Sourcing Energy at a Steel Manufacturer

1. Consider the different suppliers – which one would you select? What type of agreement would you use?

Answer-1 ) In different suppliers list I will one who is deliver materials in ant time. First of all I will meet with every one by one to one meetings. I will finalise that suppliers which have strong business background, stock of materials , strong suppply chain management and better rate of products. I will negotiate the rate before finalizing and if possible do the rate contract , in such case of construction materials or other materials which are expecting that rates will grow in future . I will do the agreement about delivery of materials time periods, payment terms and minimum quantity ordering.

2. What are the risks and rewards to consider in this case? How can the team balance these risks and rewards?

Answer-2) Rewards may be rate will rise but rate will be as per the contract and risk may be rate will be down . We must be proactive and understanding the changing trends of business and design a optional plan that supports the business.