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Week 3 Assignment

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Submitted By renealayne
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Renea Layne
INF 336 Project Procurement Management
Professor Brian Kraus
July 23, 2013

Describe the differences between needs identification and defining commercial equivalents and discuss why it is preferable to separate into two stages.
There are numerous steps that include the need for identification that is based upon production as well as service delivery timelines and schedules. The places that these must be met along with communicated with is through the verification of the greatest importance. Outlaw (2009) believes that product specifications, standards, and requirements are set forth through ISO certification or the industry certification can and will play very important roles. While also the need for identification they must also consider compliance and quality assurance.
Even though price is a primary consideration purchasing agreements devoid the specification consideration, transportation costs, manufacturer capacity, rating and/or ISO certification would increase risks to the company (Avery, 1996; Cutchins, 2009). Because it is based on the aforementioned process, the purchasing managers can then investigate the products availability. This often draws with the established relationship of vendors as well as manufacturers, purchasing managers and can discern whether offering meet the minimum requirement specifications, and whether delivery or quality may be problematic and which requirements could be utilized.
With this, the first step that would be processed would be defining the needs and also the parameters would be a critical way of determining the commercial equivalents, which would arrange these equivalent according to suitability in case there is an industry shortage and/or any other natural disaster which would happen to interrupt production and the supply chain.
Interpret the value to the organization when early supplier

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