Free Essay

Inf336 Ch6

In: Business and Management

Submitted By compns8
Words 293
Pages 2
Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages. “Every acquisition is intended to fulfill a need.” (Johnson, Leenders, & Flynn, 2010) The first step in the acquisition process is to identify what is needed. The next step the needs are translated into commercial equivalents so the suppliers understand what is needed. It is important to not combine these two stages into one. By specifying the need first then identifying the options to meet the need allows for lower cost and better or more innovative solutions. Also if a supply professional believes that more opportunities exist to improve the commercial equivalent presented by designer they must bring it to the designers’ attention. This involvement prevents the hassle of trying to reverse a design decision after it’s made. The example the book used was two pieces of wood. We say “I need a nail to nail these two pieces of wood together,” instead of “I need to fasten these two pieces of wood together.” There are many ways to fasten the wood together, nailing is just one way. Using a bolt, screw, or staple are other methods of fastening the wood together.
Interpret the value to the organization when early supplier involvement (ESI) is implemented effectively. Early supplier involvement (ESI) is valuable to the organization, it ensures that what is specified in the needs is procurable and represents good value. ESI can help identify any possible issues, eliminate unnecessary costs early on, encourage innovation, and improve project organization.

. References
Johnson, P. F., Leenders, M. R., & Flynn, A. E. (2010). Purchasing and Supply Management. Boston: McGraw-Hill Irwin.
Scott, S. (2014). Strategies for Implementing Performance Specifications: Guide for Executives. National Academy of Science.

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