What Is Vendor Management?

Supplier management is a management mechanism proposed in the new logistics and procurement economic situation. Modern management sciences such as MBA and EMBA divide it into two types of competition and win-win.

Supplier management

Supplier management is a management mechanism proposed in the new logistics and procurement economic situation. Modern management sciences such as MBA and EMBA divide it into two types of competition and win-win.

Supplier management is the supply chain

From the discussion of the principle and method of timely procurement, it can be seen that the cooperative relationship between suppliers and manufacturers is very important for the implementation of punctual procurement. Only by establishing a good supply-demand cooperation relationship can the punctual strategy be thoroughly implemented. And achieve the expected results. The supply-demand cooperation relationship in just-in-time procurement has a great role and significance.

From a supplier's perspective, if punctual procurement is not implemented, due to lack of cooperation with manufacturers,

Efficient supplier management can not only improve the management level of the enterprise, but also greatly improve the profitability of the enterprise. Networked management is also reflected in business objectivity and process execution supervision. Reduce the chance of defects. However, some companies use such statistical rules to control the quality of the supply chain and measure the level of supplier cooperation.

"Six Sigma" Supplier Management

Identification object: determine the list of optional suppliers;

Cost evaluation: determine goals and required resources;

Prioritize: find feasible solutions and sort out the order;

Characteristic analysis: analyze the selected scheme;

Execution plan: complete the project;

Outcome evaluation: Generate documentation and identify issues for improvement

In electronics

Buyer selects supplier establishment

1.1 Development purpose

In order to standardize the supplier development process and make it rule-based, this regulation is hereby formulated.

1.2 Application

The development of the company's new manufacturers, unless otherwise specified, is implemented in accordance with these regulations.

1.3 Authority

The Purchasing Department is responsible for drafting, revising, and abolishing these regulations.

The general manager is responsible for the approval of the formulation, modification and revocation of these regulations.

Supplier Development Program

2.1 Supplier Development Rights and Responsibility BR> Purchasing Department is responsible for the leading work of supplier development.

The development department is responsible for the confirmation of supplier samples.

The quality control department, the biotechnology department, the biotechnology department, and the procurement department form a manufacturer investigation team, which is responsible for the supplier's investigation and evaluation.

2.2 Sources of Supplier Information

New supplier information sources generally have the following methods:

Various purchasing guides.

News media such as TV, radio, newspapers, etc.

Various product presentations.

Various product exhibitions (sales).

Industry Association.

Industry or government statistical survey reports or publications.

Peer or supplier introduction.

Public consultation.

Suppliers proactively contact.

(10) other approaches.

2.3 Supplier Survey

2.3.1 Questionnaire design

The questionnaire design is led by the Purchasing Department and assisted by units such as quality control and development. The items to be noted in the design are:

Design the content and format according to the company's needs.

You should have as much knowledge as possible about the supplier.

Easy to fill in.

Easy to understand.

Easy to organize.

2.3.2 Supplier Basic Data Sheet

The Supplier's Basic Information Form should be completed by the manufacturer. The form includes the following:

Company name, address, telephone, fax, E-mail, website, person in charge, contact person.

Company profile such as capital amount, date of establishment, floor area, turnover, bank information.

Equipment condition.

Human resources.

Main products and raw materials.

major client.

Other necessary matters.

2.3.3 Supplier Questionnaire

Supplier questionnaires generally include the following:

Material parts confirmation.

Quality acceptance and control.

contract of purchase.

Request process.

After sales service.

Suggestions.

2.4 Supplier Development Process

Find a supplier.

Fill in the supplier's basic information form.

Negotiate with suppliers.

Make sample identification if necessary.

Supplier questionnaire.

Submit an application for supplier investigation and evaluation.

Uncontrollable drive down purchase price

In the manufacturing cost composition ^[1]

Most companies use "six sigma" for production management, and use quality standards to measure the level of their production processes to reduce the chance of defects. Contract manufacturer Raytheon Systems uses this statistical rule to control the quality of the supply chain and measure supplier cooperation. level. Raytheon Systems applies this methodology to supplier management.

Raytheon's "six-sigma" supplier management plan includes six solution steps: identify the object and determine the list of optional suppliers; cost evaluation, determine the target and required resources; prioritize, find feasible solutions and exhaust Sequence; Characteristic analysis and analysis of selected plans; Execution plan and completion of the project; Achievement evaluation: Generate documents and identify problems that need to be improved. Through the implementation of the "six sigma", the company and its suppliers can reduce the implementation cost of the cooperation project, estimate the savings, calculate the return rate, and determine the stages of project implementation.

When companies work primarily with military system suppliers rather than component manufacturers, many times it is impossible to define and measure metrics. Many industries, including the electronics industry, are trying to collaborate on a larger scale, but it is impossible to calculate how valuable such efforts are.

This cost calculation method is mostly completed in a two-day seminar held with the supplier. During the workshop, precise numerical indicators were established for each step in the project process. This is usually the first time that supplier managers and engineers have seen such detailed cost figures.

The key is that suppliers must be willing to give Raytheon access to all the massive financial information, including figures on labor, materials, basic plant operating costs, and overhead. Raytheon does not respond to financial data accordingly, but can share other data and the cost of implementing collaborative projects.

Raytheon gives suppliers detailed insights into what happens when their products arrive and what causes them when problems occur in the supply chain. However, they do not disclose all data to them, but provide data on the costs incurred in cooperation projects.

"Six Sigma" Supplier Management

Identification: determine the list of optional suppliers;

Cost assessment: determine goals and required resources;

Prioritization: find feasible solutions and rank them;

Characteristic analysis: analysis of selected schemes;

Implementation plan: complete the project;

Outcome evaluation: Generate documentation and identify issues for improvement

I. Supplier Management Principles and Systems

1. The company's purchasing department or supporting department is in charge of the supplier, and the manufacturing, finance, research and development departments assist.

2. For the selected supplier, the company signs a long-term supply cooperation agreement with it, in which the rights and obligations of both parties are specified, and the terms of reciprocity are mutually exclusive.

3. The company can evaluate the credit rating of suppliers and implement different management according to the rating.

4. The company evaluates suppliers on a regular or irregular basis and disqualifies the long-term supply cooperation agreement.

5. The company may issue a production supporting license to the component supplier.

Supplier Selection and Evaluation

The company formulates the following index system for screening and rating suppliers

1. Quality level. Including: (1) excellent quality of incoming materials; (2) quality assurance system; (3) sample quality; (4) handling of quality problems.

2. Delivery capacity. Including: (1) Timeliness of delivery; (2) Expanding the flexibility of supply; (3) Timeliness of samples; (4) Increasing or reducing the ability to order goods.

3. Price level. Including: (1) the degree of preference; (2) the ability to digest price increases; (3) the room for cost reduction.

4. Technical capabilities. Including: (1) advanced technology; (2) follow-up research and development capabilities; (3) product design capabilities; (4) technical problem response capabilities.

5. Back-up services. Including: (1) sporadic order guarantee; (2) supporting after-sales service capabilities.

6. Human resources. Including: (1) management team; (2) staff quality.

7. Current cooperation status. Including: (1) contract performance rate; (2) annual average additional burden and proportion of supply; (3) years of cooperation; (4) cooperative relations.

Third, the supplier selection method

1. For each type of material, after the market research by the Purchasing Department, a list of 5 to 10 candidate suppliers is proposed each;

2.The company set up a supplier selection team composed of procurement, quality control and technical departments;

3. After the selection team has reviewed the candidate manufacturers for the first time, the purchasing department will investigate the manufacturers on the spot, and the two parties will complete the survey form;

4. After scoring each candidate manufacturer one by one, and calculating the total scores, the decision is made.

4. If it is approved as a supplier, it must be purchased; if it is not approved, please continue to improve and retain its future candidate qualification.

Fifth, suppliers are re-evaluated every year, and those that do not meet requirements are eliminated, and qualified suppliers are replenished from the candidate team.

6. The company may assign different credit levels to the suppliers for management. The rating process is based on the supplier selection process described above.

7. For suppliers with the highest credit, the company can provide preferential treatments such as exemption from inspection of materials and preferential payment of loans.

Supplier Management Measures

1. The company may send full-time resident staff to important suppliers, or often conduct quality inspections of suppliers.

2. The company conducts quality inspection or on-site inspection of the supplied goods on a regular or irregular basis.

3. The company reduces excessive reliance on individual suppliers and diversifies procurement risks.

4. The company formulates acceptance standards for each purchased part, and acceptance acceptance procedures with suppliers.

5. The company's procurement, R & D, production, and technology departments can provide business guidance and training to suppliers, but it should be noted that the company's core products or key technologies do not spread or leak.

6. The company can invest in stocks of important, potential suppliers that meet the company's investment policy, and establish a property right relationship with the supplier.

Each company hopes that it can find a supplier that can provide good quality, good service attitude, and proper delivery time, and that the product will not fall off the chain after leaving the factory. Either the quality of the raw materials they provide is indeed good, but not necessarily loyal, or the loyal suppliers cannot provide reliable quality materials. In the face of these problems, companies will helplessly develop new suppliers and change suppliers. "Linyuan envy the fish, it is better to retreat and weave the net", instead of struggling to find them, it is better to cultivate good suppliers.

First, communicate with suppliers as equals. In this society, rich people seem to be "the grandfather". Often, the buyer has a condescending mentality in front of the supply side. He always feels that he is choosing others. In fact, on the other hand, why aren't others choosing themselves? Because suppliers will also encounter many different buyers, and they will adopt trading strategies as appropriate. Only by dropping down and communicating with others on an equal footing can it be possible to gain the favor and trust of others. To be more professional, everything should be negotiated on the premise of equality and voluntariness. The premise of a concluded contract should be equal and voluntary. Not only should the rights enjoyed be equal, but the responsibilities should also be equal. Don't force others to accept inequality, or make unnecessary disclaimers.

Second, communicate with suppliers in good faith. After gaining the favor of others, you can't cheat others for a small profit. The most fearful thing between people is "killing acquaintances". Only acquaintances can truly hurt acquaintances. Because familiar people trust each other most. Long-term partnership

After that, don't use the trust of others to do something speculative. Because after being caught by the current, not only will the previous cooperation relationship between the two parties be broken, but they will also lose their good reputation in this industry circle. In this society where credit is paramount, the loss of credibility also leads to the loss of initiative.

The interests of suppliers should then be safeguarded. When dealing with suppliers, buyers always like to treat each other as "enemies". The way to really cultivate good suppliers is to treat them as themselves and as part of their own raw material production plant. Fight the challenges and changes that the outside world may encounter with the mentality of the alliance between the two sides. As long as this, other talents may be in the position of our company. All principles for enterprises to deal with all issues should be "Hello everyone, is really good." Don't ignore the interests of suppliers in the interests of your own company. Even if the buyers themselves are "public", they cannot do good things.

Finally, it is important to realize that good suppliers are the right ones, not the best in the industry. Every enterprise wants to make the most valuable products with the least cost. In the industry, the best suppliers do provide the most reliable materials, but they may not be the most suitable. The attractiveness of an enterprise to its suppliers determines the loyalty of the supplier to the enterprise, and both parties should also pay attention to "door-to-account". When our company chooses a supplier, it should start from its own situation and weigh its own scale, popularity, purchase volume and so on.