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Supply Needs

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Supply Needs
INF 336
Prof. Beverly Williams
February 27, 2012

Supply Needs
All companies have some type of supply need and must identify the specifications of the needs to be efficient. Supply strategies are best aligned with corporate strategies when requirements and procurability are determined, risks assessed, and suppliers are identified. Supply needs and specifications, early supplier involvement, and strategic requirements will be discussed in this paper.
It is preferable to separate need identification and defining commercial equivalents into two separate stages because a company must first know what it needs and why it is needed. The type or category of need should then be determined so it is known exactly what is desired to fulfill the need. There is normally more than one way or option to satisfy a need, so the “why” helps determine how it must be produced. It must also be determined if the need is repetitive or nonrepetitive. This will determine how the product or service is purchased and through what source. A repetitive need may require a sample or trial run to ensure that the need can be met consistently on more than one occasion. Once the need is identified, it can then be converted into a commercial equivalent so the supplier can comprehend the specifications required. Separating the two stages helps identify suppliers with lower costs, higher quality, or cutting-edge technology. Without the separation, value opportunities may be overlooked.
According to Johnson, Leenders, & Flynn, (2010) early supply and supplier involvement is important because it reduces the need and difficulties associated with trying to reverse a design decision after it has been made and approved technically. During the specification stage when the commercial equivalent is being determined, supply professionals can present ideas to the supplier if it is believed

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