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Title: Vendor Performance And Delivery Evaluation
Author: S. W. Betts
Source: American Gas Association 1974
Year Published: 1974
Abstract: Materials managers are concerned with the Total Net Cost resulting from the purchase of materials. There are many functions in the material cycle that contribute to the total net cost, including: requisitioning, negotiating, ordering, expediting, packaging, delivery, receiving, inspecting, storing, invoicing and payment. There are also unnecessary costs caused by faulty material rejection, damage, material return and replacement. adjustment and negotiating for settlement. The vendor plays a key role in the material cycle and his performance has a great effect on the total net cost. For example, poor quality may result in rejection, lost time and added administration costs late deliveries could result in a project delay and added construction cosls: and poor material performance and service would increase maintenance costs and reduce the long term useful life.

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