supplier partnership part 2
TRANSCRIPT
SUPPLIER PARTNERSHIP
DEFINITION:
Supplier Partnership is the discipline the strategically planning
for, and managing, all interactions with third party organization
that supply good and or/ service to your organization, in order to
maximize the values of those interactions.
SUPPLIER PARTNERSHIP INTRODUCTION:
An organization (or customer) purchases its
requirements, raw materials, components, and
services, from supplier.
Better supplier’s quality Better product’s quality
A partnership between customer
and supplier is one of the keys to
obtaining high quality products
and services. Customers and
suppliers have the same goal –to
satisfy the end user. They must
work together as partners to
maximize the return on
investment because they have
limited resources.
JIT CONCEPT:
It calls for raw materials and
components to reach the
production operation in small
quantities when they are needed
and not before.
REASONS FOR PARTNERSHIP
PRACTICE OF CONTINUOUS PROCESS IMPROVEMENT:
The practice of continuous process
improvement has also caused many
suppliers to develop partnerships with
their customer.
REASONS FOR PARTNERSHIP
QUALITY ASSURANCE SYSTEMS (ISO 9000, ETC.)
ISO 9000 can help a company
satisfy its customers, meet
regulatory requirements, and
achieve continual improvement.
But it’s a first step, many quality
professionals will tell you, the
base level of a quality system,
not a complete guarantee of
quality.
REASONS FOR PARTNERSHIP
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
Both the customer and the supplier are fully
responsible for the control of the quality.
Both the customer and the supplier should be independent of
each other and respect each other’s independence.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
The customer is responsible for providing the supplier with clear and
sufficient requirements so that the supplier can know exactly what to
produce.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
Both the customer and the supplier should enter a contract with
respect to quality, quantity, price, delivery method, and terms of
payments.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
The supplier is responsible for providing the quality that will satisfy the
customer and submitting necessary related with customer’s needs.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
Both the customer and the supplier should
decide the method to evaluate the quality
of the product or service to satisfaction of
both parties.
Both the customer and the supplier should
continually exchange information,
sometimes using multifunctional teams, in
order to improve the product or service
quality.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
Both the customer and the supplier should perform business activities
such as procurement, production and inventory planning, and etc.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
When dealing with business transactions, both the customer and
the supplier should always have the best interest of the end
user in mind.
PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS
PARTNERING
Partnering is along-term
commitment between two or more
organizations for the purpose of
achieving specific business goals
and objectives by maximizing the
effectiveness of each participant’s
resources.
BENEFITS:
Improved quality
Increased efficiency
Lower cost
Increased opportunity for
innovation
Continuous improvement of
products or services
PARTNERING
Key Elements to a partnering Relationship:
LONG-TERM COMMITMENT:
Long-term commitment provides the
needed environment for both parties to
work toward continuous improvement.
PARTNERING
Key Elements to a partnering Relationship:
TRUST:
Trust enables the resources and
knowledge of each partner to be
combined to eliminate an adversarial
relationship. Partners are then able to
share information and accept reduced
control. Mutual trust forms the basis for
a strong working relationship.
PARTNERING
Key Elements to a partnering Relationship:
SHARED VISION:
Each of the partnering organizations
must understand the need to satisfy the
final customer. Shared goals and
objectives ensure a common direction
and must be aligned with each party
mission.
PARTNERING
TYPES OF SOURCINGSOLE A sole source of supply implies
that the organization is forced to
use only one supplier. This
situation is due to factors such as
patents, technical specification,
raw material location, only one
organization producing the item,
or the item being producing by
another plant or division of the
organization.
MULTIPLE:
Multiple sourcing is the use of
two or more suppliers for an
item. Usually three suppliers
are chosen, and their portion of
the business is a function of
their performance in term of
price, quality, and delivery.
TYPES OF SOURCING
SINGLE:
Single sourcing is a planned decision by the organization to select
one supplier for an item when several sources are available. It
results in large, long term contracts and a partnering relationship.
TYPES OF SOURCING
Benefits for organization:
Reduced business and production costs
Complete accountability
Supplier loyalty
Better end product with less variability
Benefits for supplierNew business from the customer
Reduced the cost of business
Production processes
SUPPLIER SELECTION
Before discussing supplier activities. It must be decided whether to
produce or outsource a particular item.
The following three questions need to be answered:
How critical is the item to the design of the product or service?
Does the organization have the technical knowledge to produce the
items internally? If not, should that knowledge be develop?
Are there suppliers who specialize in producing the item? If not, is
the organization willing to develop such a specialized supplier?
CONDITION OF SUPPLIER SELECTION
There are following condition for selection of supplier
The supplier understand and appreciate the management philosophy
of the organization.
The supplier has a stable management system. And ask several
question should be asked:
Is there a quality policy statement that includes objectives for quality
and its commitment to quality?
Is the policy implemented and understood at all levels of the
organization?
Is there documentation that indicates who is in charge and
responsible for quality in the organization?
The supplier maintains high technical standards and has the capability
of dealing with feature technological innovations.
CONDITION OF SUPPLIER SELECTION
The suppliers can provide those raw materials and parts required
by the purchaser and those supplied meet quality specifications.
CONDITION OF SUPPLIER SELECTION
The supplier has the capability to produce the amount of
production needed.
CONDITION OF SUPPLIER SELECTION
There is no danger of the supplier breaching corporate secrets.
The price is right and delivery dates can be meet. The supplier implements contract provisions.
CONDITION OF SUPPLIER SELECTION
The supplier has an effective quality system and
improvement program such as ISO/QS 9000.
CONDITION OF SUPPLIER SELECTION