Supplier Relations 2022 PDF

 Customer/Supplier Relations Customers and suppliers have the same goal-to satisfy the end user. The better the supplier's quality, the better the supplier's long-term position, because the customer will have better quality. Because both the customer and the supplier have limited res...

 Customer/Supplier Relations Customers and suppliers have the same goal-to satisfy the end user. The better the supplier's quality, the better the supplier's long-term position, because the customer will have better quality. Because both the customer and the supplier have limited resources, they must work together as partners to maximize their return on investment. There are ten principles to ensure quality products and services and to eliminate unsatisfactory conditions between the customer and the supplier: 1- Both the customer and the supplier are fully responsible for the control of quality. 2- Both the customer and the supplier should be independent of each other and respect each other's independence. 3- The customer is responsible for providing the supplier with clear and sufficient requirements so that the supplier can know precisely what to produce.  There are ten principles to ensure quality products and services and to eliminate unsatisfactory conditions between the customer and the supplier: 4- Both the customer and the supplier should enter into a contract with respect to quality, quantity, price, delivery method, and terms of payments. 5- The supplier is responsible for providing the quality that will satisfy the customer and submitting necessary data upon the customer's request.. There are ten principles to ensure quality products and services and to eliminate unsatisfactory conditions between the customer and the supplier: 6- Both the customer and the supplier should decide the method to evaluate the quality of the product or service to the satisfaction of both parties. 7- Both the customer and the supplier should establish in the contract the method by which they can reach a friendly settlement of any disputes that may arise. 8- Both the customer and the supplier should continually exchange information, sometimes using multifunctional teams, in order to improve the product or service quality. There are ten principles to ensure quality products and services and to eliminate unsatisfactory conditions between the customer and the supplier: 9- Both the customer and the supplier should perform business activities such as procurement, production and inventory planning, clerical work, and systems so that satisfactory relationship is maintained. 10- When dealing with business transactions, both the customer and the supplier should always have the best interest of the end user in mind.  Partnership is a long-term commitment between two or more organizations for the purpose of achieving specific business goals and objectives by maximizing the effectiveness of each participant's resources  Benefits of supplier partnership include improved quality, increased efficiency, lower cost, increased opportunity for innovation, and the continuous improvement of products and services  Key elements to partnership relationships Long term Trust Shared vision commitment 1. Long-Term Commitment: Benefits of partnering are not achieved quickly. Problems require time to resolve or processes need constant improvement. 2. Trust. Trust enables the resources and knowledge of each partner to be combined to eliminate an adversarial relationship. Partners are then able to share information and accept reduced control. 3. Shared Vision:Each of the partnering organizations must understand the need to satisfy the final customer. To achieve this vision, there should be an open exchange of needs and expectations.  Supplier Selection Before discussing supplier activities, it must be decided whether to produce or outsource a particular item. This decision is a strategic one that must be made during the design stage.  Supplier Selection The following three questions need to be answered: 1- How critical is the item to the design of the product or service? 2- Does the organization have the technical knowledge to produce the items internally? If not, should that knowledge be developed? 3- Are there suppliers who specialize in producing the item? If not, is the organization willing to develop such a specialized supplier  Once the decision has been made to outsource, then the supplier must be selected.  1- The supplier understands and appreciates the management philosophy of the organization. 2- The supplier has a stable management system 3- The supplier maintains high technical standards and has the capability of dealing with future technological innovations. 4- The supplier can provide those raw materials and parts required by the purchaser, and those supplied meet the quality specifications. 5- The supplier has the capability to produce the amount of production needed or can attain that capability. 6-There is no danger of the supplier breaching corporate secrets. 7- The price is right and the delivery dates can be met. 8-The supplier is sincere in implementing the contract provisions. 9- The supplier has an effective quality system and improvement program such as ISO/QS 9000. 10- The supplier has a track record of customer satisfaction and organization credibility