Business Screening Document -
Every company has their defined organisation management structure and this management team is responsible for creating a strong relationships with employees, shareholders and the customer.
Introduce and embrace fundamental and new company values among them.
Predicting the future market, guiding the company for its products to sustain in the market .Also increase company market growth in terms profit and reputation and so on responsibilities.
What is Business Screening Document (BSD) ?
When any company receives Request for quotation for the business opportunity from any other company or person.Before sending quotation to customer, receival company's Business development team has to present the opportunity in front of the company management team.So that management team can share their views on the opportunity and provide decision to proceed for this business or not.
What information this document has ?
To keep uniformity in Business Screening , company create a standard document which will be used for all the Business Screenings.
This document consists of below points -
1. Customer
2. Relation with customer
Management needs previous relation history of customer with the company in terms of engineering, quality,sales, purchasing, payment.
3. Customer Product details
In this section, overall information of final customer product is given like market need of product, features of the product, competitors having similar products,expected sales volume.
4. Sales region
Not every product is suitable for all the region's of world.For example- Supercar can not be used in off highway roads. So,sales region and customers and company's presence in that region is an important factor.
5. Customer's Program timeline
Sometimes customer wants to launch product in market too quickly.It is important to know timelines,so that company's engineering and plant capabilities can be adjusted accordingly.
6. Annual Sales volume
Annual sales volume are need to plant capabilities and manpower management also for calculating expected overall company sales volume for the year.
7. Purchasing Terms
Purchasing terms explains,what type of purchase customer wants, one time purchase agreement or the agreement with timely scheduled.
8.Packing and shipment terms
What of packing and ways of shipment is expected from customer is explained in this section.
9.Payment terms
Payment Terms are mutually agreed by both the companies and varies from customers to customers. Sometime payment made on credit base or debit base depending upon the customer relations with company, discuss done on agreement signing.
10.Expected revenue generation
Considering the expected annual sales, expected revenue of before and after tax is calculated for the financial year.
11. Risk involved,if project taken
For any business opportunities,there are some Risk involved in it.In this section,Risk involved in the project is explained.This is depends upon many factors like product, customer, market need and so on.
12. Risk involved,if project not taken
As Risk involved if project taken, there are also Risk involved if project not taken. For example - Competitors may get a business with customer and possibility of overtaking share of existing businesses.
13.Future Opportunities
Opportunity opens the doors to new opportunities ! Probable new business opportunities with this business are explained in this section.
So, above all information is mentioned in business screening is tool for management to decide why the opportunity or business is needed for company. After business Screening is done,if management provides approval then quotation can be sent to customer.
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