Question

receiving - page 112-130
6.1 purchasing considerations
learning objectives:
-describe criteria for an approved supplier.
key terms in this section
approved supplier
what is an approved supplier?
why should you use an approved supplier for all purchases?

Explanation:

1. What is an approved supplier?: An approved supplier is a vendor that has been vetted and meets an organization's predefined criteria for quality, reliability, compliance, and performance, and is authorized to provide goods or services to the organization.
2. Why should you use an approved supplier for all purchases?:

• Ensures consistent quality of goods/services.
• Reduces supply chain risks (e.g., delays, non-compliance).
• Ensures adherence to organizational policies and regulatory standards.
• Streamlines procurement processes by pre-vetted options.
• Often includes established terms for pricing, delivery, and support.

Answer:

1. An approved supplier is a pre-vetted vendor that meets an organization's established standards for quality, reliability, compliance, and performance, and is authorized to provide goods or services to that organization.
2. You should use approved suppliers for all purchases because:

• They guarantee consistent quality of inputs.
• They minimize supply chain risks like delays or non-compliance.
• They ensure alignment with organizational and regulatory requirements.
• They simplify procurement workflows with pre-approved terms.
• They typically offer agreed-upon pricing, delivery, and support terms.