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Supplier Partnership

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Supplier Partnership Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor of Industrial Engineering and Industrial Management – PowerPoint PPT presentation

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Title: Supplier Partnership


1
Supplier Partnership
  • Presented by Dr. Joan Burtner
  • Certified Quality Engineer
  • Associate Professor of
  • Industrial Engineering and Industrial Management
  • Mercer University

2
Introduction
  • Supplier quality can substantially affect the
    cost of a service or product
  • Customers and suppliers have the same goal to
    satisfy the end user
  • Demings influence
  • Stop awarding business based on price alone
  • Develop long-term relationships by using single
    suppliers
  • Other trends after 1980
  • Just-in-time philosophy
  • Continuous process improvement
  • Acceptance of ISO 9000

3
Customer and Supplier Partnering
  • Long-term commitment
  • Problem solving takes time
  • Total organizational involvement required
  • Suppliers may be reluctant to make large
    investments without long-term commitment
  • Trust
  • Non-adversarial relationship required
  • Open and frequent communication strengthens the
    relationship
  • Shared vision
  • Need to satisfy the final customer
  • Each partner should understand the others
    business
  • Mutual strategic planning will benefit both
    parties

4
Sourcing
  • Sole The organization is forced to use only
    one supplier.
  • Single The organization chooses to select one
    supplier for an item when more than one supplier
    is available.
  • Potential advantages reduced business and
    production cost, better end product with reduced
    variability, better accountability, more loyalty
  • Potential threat delivery disruption
  • Multiple The organization uses two or more
    suppliers for a specific item.
  • Competition will result in better quality, better
    service, lower costs
  • May eliminate disruption of supply due to
    strikes, etc.

5
Selection Decisions
  • Decision 1 produce in-house or outsource
  • If decision to outsource is chosen
  • Develop criteria for selection
  • Send multifunctional team to assess suppliers
    before making final choice

6
Certification
  • Starts after supplier begins shipment of the
    product
  • Based on mutually-developed unambiguous
    specifications
  • Relies on a predetermined process for dealing
    with nonconformities
  • Requires that the supplier has a fully-documented
    quality system
  • Identifies who is responsible for conducting
    inspections and tests
  • Suppliers may be decertified as a result of major
    problems

7
Supplier Rating System
  • Supplier rating system is designed to provide
  • Metric overall rating of supplier performance
  • Systematic communications regarding quality,
    service, and delivery
  • Factual record of problems for corrective action
  • Positive relationship between customer and
    supplier
  • Successful supplier rating system requires
  • Internal structure to implement and sustain the
    rating program
  • Regular and formal review process
  • Standard measurement system for all the suppliers

8
Contact Information
  • Email Burtner_J_at_Mercer.edu
  • US Mail
  • Mercer University School of Engineering
  • 1400 Coleman Avenue
  • Macon, GA
  • Phone (478) 301- 4127
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