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Best Practice Database
Business Operations » Supply Chain
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This 22-page document underscores the need for close consideration of potential supplier partnerships, standards and measurement around these alliances, including using a system of metrics to select vendors and full cooperation in partnerships. Examples of global companies' selection and screening processes for suppliers are featured.
· Internal needs assessment prior to the selection process
· Capability determination
· Inspection and certification
SAMPLE BEST PRACTICES
· Establish a comprehensive plan that reflects the company’s priorities before entering into customer-supplier partnerships.
Understanding the needs and expectations of the supply base management system is a critical first step in successful implementation. To that end, Advanced Micro Devices identifies several key steps that should be taken before and when managing purchaser-supplier partnerships to leverage performance. These include:
1. Determine the purpose of each alliance.
2. Set initial evaluation standards
3. Create a performance-evaluation system for purchasing tied to supplier performance
4. Link supplier performance to purchasing performance
5. Develop a reward/recognition system for suppliers and purchasers
6. Continue the process with ongoing evaluation
Emphasize the mutual benefits that result from partnerships when bringing suppliers into certification programs and strategic alliances.
From a supplier’s perspective, the certification and partnership programs in place at Best Plants represent a major investment in time, commitment and effort. In most successful partnerships, suppliers often expect single-source contracts for the entire life cycle of a product. The potential also exists to grow along with their customer.