This document discusses principles of customer-supplier relationships in total quality management, including partnering, sourcing, supplier selection, supplier rating, and relationship development. The key points are that customers and suppliers should have long-term commitments based on trust and shared visions, methods for evaluating quality and supplier performance are important, and close collaboration through inspection, training, and team approaches helps develop strong relationships.

1. Total Quality Management
Chapter 6: Supplier Partnership
Atit Patumvan
Faculty of Management and Information Sciences,
Naresuan University
1

2. Agenda
• Principles of Customer/Supplier Relations
• Partnering
• Sourcing
• Supplier Selection
• Supplier Rating
• Relationship Development
Atit Patumvan, Faculty of Management and Information Sciences, Naresuan University

3. Principles of Customer/Supplier Relations
• Fully responsible for the control of quality
• Be independent of each other and respect each other’s
independent
• The customer is responsible for providing the supplier with clear
and sufficient requirements.
• Enter into a nonadversarial contract with respect to quality,
quantity, price, delivery method, and terms of payments.
• The supplier is responsible for providing the quality that will
satisfy the customer and submit necessary data upon the
customer request.

4. Principles of Customer/Supplier Relations
• They should be decide the method to evaluate the
quality of the product or services.
• They should establish in the contract the method.
• They should continually exchange information.
• They should perform business activities
• They should always have the best interest of the
end user in mind.

5. Partnering
• Long-term commitment -> provides enough
time to work together.
• Trust -> to eliminate an adversarial
relationship
• Share Vision -> to understand the need to
satisfy the final customer

6. Sourcing
• Sole: the organization is forced to use only
one supplier
• Multiple: the use of two or more supplier for
an item
• Single: the organization prefer to one supplier
for an item when several source are available

7. Supplier Selection
• How critical is the item to design of the product
or service?
• Does the organization have technical
knowledge to produce the items internally? If
not, should that knowledge be developed?
• Are there suppliers who specialize in producing
the item? If not, is the organization willing to
develop such a specialized supplier?

8. Supplier Rating
• Obtain overall rating of supplier performance.
• Ensure complete communication with suppliers
concerning their performance.
• Provide each supplier with detailed and factual
record of problems.
• Enhance the relationship between customer
and the supplier.

9. Factors for Supplier Rating
• an internal structure to implement and sustain
rating program
• a regular and formal review process
• a standard measurement system for all
supplier

10. Relationship Development
• Inspection
• Training
• Team Approach