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 [phone]