代写CREATING AND MANAGING SUPPLIER RELATIONSHIPS
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•Chapter 3
•CREATING AND MANAGING SUPPLIER RELATIONSHIPS
•Chapter 3
Learning Objectives
You should be able to:
•Explain the importance of supplier partnerships
•Understand the key factors for developing successful partnerships
•Develop a supplier evaluation & certification program
•Explain the importance of a supplier recognition program
•Understand the capabilities of Supplier Relationship Management
•Explain the benefits of using SRM software to manage suppliers
•Chapter Outline
•Introduction
•Developing Supplier Relationships
•Supplier Evaluation & Certification
•Supplier Development
•Supplier Recognition Programs
•Supplier Relationship Management
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•Keys to Successful Partnerships
Strong supplier partnerships
§Important to achieving win-win competitive performance for the buyer and supplier -- these require a strategic perspective as opposed to a tactical position
§Involve “a mutual commitment over an extended time to work together to the mutual benefit of both parties, sharing relevant information and the risks and rewards of the relationship”
•Keys to Successful Partnerships (Continued)
Building Trust
§With trust, partners are more willing to work together, find compromise solutions to problems, work toward achieving long-term benefits for both parties, &, in short, go to the extra mile.
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Shared Vision & Objectives
§Both partners must share the same vision & have objectives that are not only clear but mutually agreeable. The focus must move beyond tactical issues & toward a more strategic path to corporate success.
•Keys to Successful Partnerships (Continued)
Personal Relationships
§It is people who communicate & make things happen
代写CREATING AND MANAGING SUPPLIER RELATIONSHIPS
Mutual Benefits & Needs
§Partnership should result in a win-win situation, which can only be achieved if both companies have compatible needs. An alliance is much like a marriage, & if only one party is happy, then the marriage is not likely to last
•Keys to Successful Partnerships (Continued)
Commitment & Top Management Support
§Commitment must start at the highest management level. Partnerships tend to be successful when top executives are actively supporting the partnership
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Change Management
§Companies must be prepared to manage change that comes with the formation of new partnerships
•Keys to Successful Partnerships (Continued)
Information Sharing & Lines of Communication
§Both formal & informal lines of communication should be set up to facilitate free flow of information. Confidentiality of sensitive information must be maintained
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Relationship Capabilities
§Key suppliers must have the right technology & capabilities to meet cost, quality, & delivery requirements in a timely manner
•Keys to Successful Partnerships (Continued)
Performance Metrics
You can’t improve what you can’t measure
§Measures related to quality, cost, delivery, & flexibility are used to evaluate suppliers.
§Metrics should be:1) understandable, 2) easy to measure, & 3) focused on real value-added results
§A multi-criteria approach is best
§Total cost of ownership (TCO), is made up of all costs associated w/acquisition, use, & maintenance of a good or service
•Keys to Successful Partnerships (Continued)
Continuous Improvement
§Making a series of small improvements over time results in the elimination of waste in a system
§Buyers & suppliers must be willing to continuously improve their capabilities in meeting customer requirements of cost, quality, delivery, & technology
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•Keys to Successful Partnerships (Continued)
Monitoring Supplier Relationships
§The organization should have a firm grasp of the key issues surrounding supplier relationships which may include
§Creativity
§Stability
§Communication
§Reliability
§Value
•Supplier Evaluation & Certification
§A process to identify best & most reliable suppliers
§Sourcing decisions are made on facts & not on perception
§Frequent feedback can help avoid surprises & maintain good relationships.
§Suppliers should be allowed to provide constructive feedback to the customer
§Supplier Certification refers to “an organization’s process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections.” -Institute for Supply Management
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•Supplier Evaluation & Certification (Continued)
Criteria Used in Certification Programs
§No incoming product lot rejections (e.g., less than 0.5 percent defective) for a specified time period.
§No incoming non-product rejections (e.g., late delivery) for a specified time period
§No significant supplier production-related negative incidents for a specified time period
§ISO 9000/Q9000/14001 certified or successfully passing a recent, on-site quality system evaluation
§Mutually agreed-upon set of clearly specified quality performance measures
§Fully documented process & quality system with cost controls & continuous improvement capabilities
§Supplier’s processes stable & in control
•Supplier Evaluation & Certification (Continued)
The Weighted-Criteria Evaluation System
1.Select the key dimensions of performance mutually acceptable to both customer & supplier.
2.Monitor & collect performance data.
3.Assign weights to each of the dimensions.
4.Evaluate performance measures between 0 & 100.
5.Multiply dimension rating by weight & sum of overall score.
6.Classify vendors based on their overall score: Unacceptable, Conditional, Certified, & Preferred
7.Audit & perform ongoing certification review.
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•Supplier Evaluation & Certification (Continued)
•Supplier Evaluation & Certification (Continued)
ISO 9000
§Developed by International Organization for Standardization (ISO) - series of management & quality standards in design, development, production, installation, & service.
§Companies wanting to sell in the global market seek ISO 9000 certification.
ISO 14000
§A family of standards for environmental management.
§The benefits include reduced energy consumption, environmental liability, waste & pollution, & improved community goodwill.
•Supplier Development
Supplier development
A buyer’s activities to improve a supplier’s performance and/or capabilities based on the following approach –
1.Identify critical products & services
2.Identify critical suppliers not meeting performance requirements
3.Form a cross-functional team
4.Meet with top management of supplier
5.Rank supplier development projects
6.Define details of Agreement
7.Monitor status & modify strategies
•Supplier Recognition Programs
Three Attributes –
§Companies should recognize & celebrate the achievements of their best suppliers.
§Award winners exemplify true partnerships continuous improvement, organizational commitment, & excellence.
§Award-winning suppliers serve as role models for other suppliers.
•Supplier Relationship Management
Supplier Relationship Management (SRM)
§Refers to streamlining the processes and communication between buyer and supplier using software applications manage processes more efficiently and effectively.
§Transactional SRM is used to track supplier interactions such as order planning, order payment and returns
§Analytic SRM allows the company to analyze the complete supplier base.
•Supplier Relationship Management (Continued)
Five key points of an SRM system
1.Automation handles routine transactions
2.Integration spans multiple departments, processes, & software applications
3.Visibility of information & process flows
4.Collaboration through information sharing
5.Optimization of processes & decision making
•Supplier Relationship Management (Continued)
SRM Software Suppliers –
代写CREATING AND MANAGING SUPPLIER RELATIONSHIPS
§ecVision www.ecvision.com
§JDA Software Group, Inc. www.jda.com
§Oracle www.oracle.com
§SAP www.sap.com
•Benefits in Supplier Relationship Management
Benefits derived from automating procurement activities
§Significant cost savings as buyers move toward managing processes by exception
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§Greater procurement visibility from using SRM software also translates into
smoother processes reduced product development
faster cycle times streamlined purchasing
improved time to market reduced inventory costs
代写CREATING AND MANAGING SUPPLIER RELATIONSHIPS
