Most manufacturers now out-source their components, parts and accessories, unlike the past, when almost entire manufacturing was done in-house. In addition, gloabalisation of sources to secure price and quality advantage involves substantial procurement rather than in-house manufacturing. Suppliers have thus become an important source of competitive advantage. Locating, developing and sustaining reliable sources of supply is very important. Suppliers can also assist in achieving substantial cost reduction and product innovation. World-class companies realize that the cost and quality of their products and services are directly related to the quality of their suppliers. Initial Sourcing & thereafter Supplier Management have become key activities. Even non-manufacturing companies benefit a great deal by selecting and managing their vendor base systematically.
What is Sourcing Excellence ?
Reverse Marketing: Supply Market Research (SMR), Know Your Suppliers (KYS).
Framework for Supply Strategy: Strategy for Routine items, Leverage items, Bottleneck items and Critical Items,
Supplier Qualification Process: Vendor Identification, Selection & Approval, Vendor Certification.
Vendor Quality Management:
Self Certification, Supplier Quality Assurance Programme.
Supplier Integration & Ugradation:
Vendor Improvement Programmes (VIP), Supplier Relationship Management (SRM), Strategic Alliances & Partnerships: Organizing for JIT & Vendor Managed Inventory, Supplier Clinics, Vendor Meets, Key Supplier Account Management (KSAM).
Vendor Rating, Developing a Computerized Vendor Rating System.
Measuring Supplier Satisfaction: Pros & Cons
Negotiation with Vendors