Jun 242017
 
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SUPPLIER MANAGEMENT


In order to get the most out of suppliers it is important to decrease the supplier base and work closely with existing suppliers.   Use the following information to evaluate supplier performance.

PRIMARY MEASURES 

  • Price
  • Financial Feasibility
  • Attitude
  • Training Resources
  • Facility Location
  • IT Resources
  • Capacity
  • Speed
  • Delivery Performance
  • Damages
  • On Time Deliveries
  • PO Correctness
  • Stock Out Frequency
  • Perfect Orders
  • Product Availability
  • Dependability
  • Number of claims/discrepancies
  • Labor relations
  • Quality
  • Past History
  • Warranties
  • Costing Procedures
  • Information Sharing
  • Company Reputation
  • Packaging Abilities
  • Shipping Capabilities
  • Cycle Time
  • Facility locations
  • Product Availability
  • Flexibility
  • Reliability
  • Order Cycle Time
  • Lead Time
  • Convenience
  • Billing Errors
  • Quality control
  • Warranties

QUESTIONS FOR VENDOR MANAGEMENT (existing suppliers)

  • Supplier works closely to lower overall costs
  • Supplier provides market/product knowledge/information along with service and support
  • Supplier identifies opportunities to decrease costs and suggests ideas on ways to improve the supply chain.
  • Supplier performs joint cost-reduction/quality improvement programs
  • Supplier can deliver products across various geographic regions
  • Shares data and supplies resources to locate and solve problems.
  • Deliveries meet deadlines and do not need to be expedited to meet delivery time.
  • Supplier readily shares cost information.
  • Supplier recognizes potential opportunities to incorporate new ideas.
  • Supplier is involved with product in early stages of design
  • Supplier implements procedures for controlling fluctuations in raw material costs
  • Provides technical support for production/quality problems
  • Supplier gives ideas and suggestions during initial stages of product development
  • Proactive in offering innovative and alternative technologies
  • Supplier is proactive in finding problems and discovering solutions
  • Supplier gives feedback on quotations to reduce costs
  • High interest in joint problem solving.
  • Reacts quickly and effectively to problems and proactive to finding solutions
  • Supplier is flexible and adjust to special requests when needed
  • Supplier responds quickly and effectively under adverse situations.
  • Supplier keeps the lines of communication open and lets customers know when problems may occur
  • Expedites emergency orders in a timely manner
  • Suppliers do what they say and are trustworthy
  • Proactive in communicating forecasts for planning and deliveries
  • Suppliers’ technology roadmap aligns with the company’s current IT initiatives
  • Capable to exchange information through the Internet
  • Proactive in providing value added proposals
  • Supplier provides innovative suggestions for improvements and anticipates future problems
  • Participates in joint development efforts
  • Provides technological assistance and engineering support
  • Supplier is willing to provide rapid modeling and prototype capabilities
  • What is the financial feasibility of the company
  • What is the vendor’s reputation in the industry
  • Is the quality worth the price
  • Is the product over engineered
  • Does the supplier have a quality system in place
  • Is there a quality improvement plan in place
  • Does the vendor meet delivery and cycle time goals
  • Does the supplier try to reduce lead times
  • Are there processes for controlling and leveraging raw material cost

Supplier Management and Development Training.

Supplier Management P&G

Supplier Selection and Certification

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