4. 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.
5. INTRODUCTION
An organization(or customer) purchases its
requirements, raw materials, components, and
services, from supplier.
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.
6. ....cont
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.
7. 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.
9. REASONS FOR
PARTNERSHIP
JIT CONCEPT:
It calls for raw materials and
components to reach the production
operation in small quantities when
they are needed and not before.
10. 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.
11. 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.
14. 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.
16. 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.
17. 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.
20. 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.
22. 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.
23. 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.
24. 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.
27. TYPES OF SOURCING
SOLE
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.
28. TYPES OF SOURCING
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.
29. 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.
30. Benefits for organization:
Reduced business and production costs
Complete accountability
Supplier loyalty
Better end product with less variability
Benefits for supplier
New business from the customer
Reduced the cost of business
Production processes
31. 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?
32. 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?
33. CONDITION OF SUPPLIER
SELECTION
The supplier maintains high technical standards and has the capability of
dealing with feature technological innovations.
34. CONDITION OF SUPPLIER
SELECTION
The suppliers can provide those raw materials and parts required by
the purchaser and those supplied meet quality specifications.
36. 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.
