2. Introductions
• To meet growing demands for high quality & zero-deflect pdts-
organizations have recognized the important of suppliers
• Also regarded as partners in the organization.
3. Principles of customer/supplier relations
• Continuous process improvement ,it is essential for the organization to
have partnering atmosphere with supplier.
4. Ishikawa’s 10 principles for cus/sup
• Both should decide the methods to evaluate the quality of the pdt or
service to satisfaction of both parties.
• Both should establish in the bond - method by which they can reach an
friendly settlement of any arguments that may arise
• Both should continually exchange information in order to improve the ptds
or service
• Both should perform business activates such as obtaining production.
• when dealing with business transaction, both the customer & the supplier
should always have the best interest of the end user in mind .
5. Supplier partnering
What is supplier partnering ?
Continuing relationship b/w
• a buying firm & supplying firm
• involving a commitment over an extended time period
• an exchange of information
• acknowledgement of the risks
• rewards of the relationship
6. • The relationship b/w customer and supplier should be based upon
trust, dedication to common goals and objectives and an understanding
of each party’s expectations and values.
7. Benefits of partnering
• Improved quality
• Reduced cost
• Increased productivity
• Increased efficiency
• Increased market share
• Increased opportunity for innovation
• Continuous improvement of pdts/services
8. Key element to partnering
3 important to achieve the customer/supplier partnering relationship
• Long term commitment
• Trust
• Shared vision
9. Long term commitment
• Provides both – needed environment to achieve the planned objectives.
• Becoz to setup & solve the problem of continuous improvement ,both
parties requires the sufficient time
10. Trust
Mutual trust b/w two parties forms the basis for strong working
relationship
Enables the partner -effectively combine their resources & knowledge
Result – win-win situation for both partners.
11. Shared vision
• Both have the common goal i.e., to satisfy the end user.
• In order to ensure this goal ,both parties should share & understand
their goals & objectives
• This concept is also know as mutual strategic planning
13. Sole sourcing
• Use of only one supplier for the organization
• Does not have any choice
• Forced to use only one supplier
Factors
• Patent
• technical specification
• raw material location
• only one organization providing the items
14. Multiple sourcing
Use of two or more supplier for an items
Basic concept of multiple sourcing is competition will result in
• better quality
• Lower cost
• Better service
15. • The selection of supplier from various alternatives is based on their
performance in terms of price, quality and delivery.
19. Supplier rating
• What is supplier rating ?
• score card system,
• Used to obtain an overall rating of supplier performance
• Similar to student progress report
20. Supplier rating is based on
• Quality
• Price
• Performance
• Production capabilty
21. Objective of SR
• overall rating of supplier performance.
• communication with supplier.
• Provide detail of problems for correction action.
• Maintain & improve the partnering.
22. Supplier rating format
Period :
Location :
Max.point
Supplier A Supplier B Supplier C Supplier D
Actual points Actual points Actual points Actual points
Quality
performance
1.Quality
2.Price
3.Performance
4.Productivity
Item : Rated by: Date:
5.0 = very good 2.0 = poor 1.0 = very poor 0 = negative
4.0 = good 3.0 = average