Primary Information:

When any Manufacturing Factory gets any detail about any Industry – which need some pars for various purposes, it (e.g castings for engineering industry) starts communication with that company for their need for parts.

At a prolonged communication and sometimes, promptly Factory gets a reply for sending its details- profile, capacity etc. etc…! Now Factory starts working actually. Factory sends the details of his facility & other. & a result of these all exercises, either Factory gets set of drawings or a letter asking his permission to visit the Factory by that new customer company. Now we will recognize this company as a customer company (CC) & Factory as Vendor.

Foundry works on the drawings & sends them a competitive offer for those parts. Now, our main problem is to send this offer. What is the base to calculate this offer for the customer? Offer must contain all the information mentioned in the drawings & specifications provided by the customer. And at Vendor end ,vendor should calculate the offer value in such a manner that will include all responsible cost to vandor to manufacture that product.

Everything must be cleared before preparing an offer & understood by both parties (customer & supplier) for every requirement for that product. All the requirements must be measurable & able by supplier to be fulfilled. In short, the supplier recognizes & understands what the customer does want, & confirms to deliver it by his offer.

If this simple rule is not followed, it is known so many times that there are many problems lying between customer & supplier after starting development of the part. If both parties sit on a table & discuss healthily for do’s & don’ts, it will be very smooth to develop any part after wards. This can be followed by a clear & complete offer, which can be used for order after wards. If both parties accept the conditions raised by other party, they sign the offer & then start the business relation.

Many customers clearly mention the standard numbers by which they need the parts –including material standards, testing standards, delivery standards etc along with drawings with their “Purchase Conditions”. If supplier does not get clear idea about any of the point about material, delivery, packing or testing during his study of the drawing for preparing an offer, he MUST write very clearly to customer to clarify, before submitting an offer.