Supplier partnership & performance measures

1. Supplier partnership &
performance measures

2. Introductions
• To meet growing demands for high quality & zero-deflect pdts-
organizations have recognized the important of suppliers
• Also regarded as partners in the organization.

3. Principles of customer/supplier relations
• Continuous process improvement ,it is essential for the organization to
have partnering atmosphere with supplier.

4. Ishikawa’s 10 principles for cus/sup
• Both should decide the methods to evaluate the quality of the pdt or
service to satisfaction of both parties.
• Both should establish in the bond - method by which they can reach an
friendly settlement of any arguments that may arise
• Both should continually exchange information in order to improve the ptds
or service
• Both should perform business activates such as obtaining production.
• when dealing with business transaction, both the customer & the supplier
should always have the best interest of the end user in mind .

5. Supplier partnering
What is supplier partnering ?
Continuing relationship b/w
• a buying firm & supplying firm
• involving a commitment over an extended time period
• an exchange of information
• acknowledgement of the risks
• rewards of the relationship

6. • The relationship b/w customer and supplier should be based upon
trust, dedication to common goals and objectives and an understanding
of each party’s expectations and values.

7. Benefits of partnering
• Improved quality
• Reduced cost
• Increased productivity
• Increased efficiency
• Increased market share
• Increased opportunity for innovation
• Continuous improvement of pdts/services

8. Key element to partnering
3 important to achieve the customer/supplier partnering relationship
• Long term commitment
• Trust
• Shared vision

9. Long term commitment
• Provides both – needed environment to achieve the planned objectives.
• Becoz to setup & solve the problem of continuous improvement ,both
parties requires the sufficient time

10. Trust
Mutual trust b/w two parties forms the basis for strong working
relationship
Enables the partner -effectively combine their resources & knowledge
Result – win-win situation for both partners.

11. Shared vision
• Both have the common goal i.e., to satisfy the end user.
• In order to ensure this goal ,both parties should share & understand
their goals & objectives
• This concept is also know as mutual strategic planning

12. Supplier sourcing
3 types of supplier
• Sole sourcing
• Multiple sourcing
• Single sourcing

13. Sole sourcing
• Use of only one supplier for the organization
• Does not have any choice
• Forced to use only one supplier
Factors
• Patent
• technical specification
• raw material location
• only one organization providing the items

14. Multiple sourcing
Use of two or more supplier for an items
Basic concept of multiple sourcing is competition will result in
• better quality
• Lower cost
• Better service

15. • The selection of supplier from various alternatives is based on their
performance in terms of price, quality and delivery.

16. Single sourcing
Use of one supplier for an item when several sources are available.

17. Supplier selection
• Selected based on their performance in terms of cost ,quality &
delivery reliable.

18. Stages in supplier selection & evaluation
• Survey stage
• Enquiry stage
• Cooperation & selection stage
• Experience stage

19. Supplier rating
• What is supplier rating ?
• score card system,
• Used to obtain an overall rating of supplier performance
• Similar to student progress report

20. Supplier rating is based on
• Quality
• Price
• Performance
• Production capabilty

21. Objective of SR
• overall rating of supplier performance.
• communication with supplier.
• Provide detail of problems for correction action.
• Maintain & improve the partnering.

22. Supplier rating format
Period :
Location :
Max.point
Supplier A Supplier B Supplier C Supplier D
Actual points Actual points Actual points Actual points
Quality
performance
1.Quality
2.Price
3.Performance
4.Productivity
Item : Rated by: Date:
5.0 = very good 2.0 = poor 1.0 = very poor 0 = negative
4.0 = good 3.0 = average

23. Relationship development
Maintaining the growth of the customer-supplier
• Inspection
• Training
• Team approach
• Recognition

24. Ref
• Kuester, Sabine (2012): MKT 301: Strategic Marketing & Marketing
in Specific Industry Contexts, University of Mannheim,p. 110.
• LynnR.Kahle,AngelineG.Close(2011). ConsumerBehavior
Knowledge for Effective Sports and Event Marketing. NewYork:
Routledge. ISBN978-0-415-87358-1.
• ElizabethA.Minton, LynnR.Khale(2014). Belief Systems, Religion,
and Behavioral Economics. New York:
BusinessExpertPressLLC.ISBN978-1-60649-704-3.
• Sandhusen,RichardL.: Marketing(2000). Cf. S.218.

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