Explain SDE Analysis

SDE Analysis: Criterion Employed – Procurement diff100711160`14e. how easy or difficult it is to procure each of these, items.

S-D-E stands for Scarce, Difficult and Easy. It attempts to classify items on the basis of its availability or procurement such as

a)      Its non-availability.

b)      How scarce it is.

c)      Does it have a longer lead time ?

d)      Where is the geographical location of the suppliers of the item, i.e. close by, or very far away.

e)      How reliable (or unreliable) ,after the suppliers of the item, etc.

Scarce: These are generally short in supply, or are channelized through government agencies. If the company feels that a lot of time as well as expenditure is involved in procuring these items, it would be advisable for the company to procure these items, say once a year.

Difficult: These items are available indigenously, but are difficult to procure. “Difficult” categorization also includes those items which are procured from far off places and whose suppliers cannot be relied upon. Sometimes it may happen that certain items are difficult to manufacture and further, there may be only one or two companies who manufacture this item. In order to procure such items in time for production, the manufacturers may have to be given an order well in advance. Such items are also classified under “difficult” Category.

Easy: As the name suggests, these items are easily and readily available. They include all those items that are produced according to commercial standards, items which are able to be procured locally without any difficulty, etc.