What Does a Raw Materials Supplier Do?

Suppliers are companies and individuals that supply various required resources to enterprises and their competitors, including the provision of raw materials, equipment, energy, labor, etc. How their situation will have a huge impact on the company's marketing activities, such as changes in the price of raw materials and shortages will affect the price and delivery time of the company's products, and will thus weaken the long-term cooperation and interests of the company and customers. Must have a comprehensive understanding and thorough analysis of the supplier's situation. Suppliers are both opponents and partners in business negotiations. ^[1]

supplier

Suppliers are companies and individuals that supply various required resources to enterprises and their competitors, including the provision of raw materials, equipment, energy, labor, etc. How their situation will have a huge impact on the company's marketing activities, such as changes in the price of raw materials and shortages will affect the price and delivery time of the company's products, and will thus weaken the long-term cooperation and interests of the company and customers. Must have a comprehensive understanding and thorough analysis of the supplier's situation. Suppliers are both opponents and partners in business negotiations. ^[1]

should

Supplier classification is an important part of supplier system management. It determines which vendors you want to launch

Pick

In the case of the same quotation and the same delivery commitment, those suppliers with good corporate image and strength should be selected first. If this supplier has ever given some

1. Make connections

Potential suppliers can contact us through various media. Send us the necessary information.

a) The necessary information can be sent to us through the message board recruited by the hot commodity supplier on the e-commerce A website. Note: company name, city, main product, name, contact number, etc., so that our staff can contact your company to discuss details of cooperation;

b) The necessary information can be completed through the website registration;

c) can establish direct contact with us by telephone and other methods, and provide necessary information such as company name, city, main product, name, contact phone number;

d) Can directly interview with our purchasing department personnel to understand each other's information.

2.View samples

3. Cooperation and negotiation

The supplier sends the basic information such as the product name, price, and sample to e-commerce A. E-commerce A will communicate with the supplier in detail to determine the price and quantity of the purchased products. And make a standard purchase contract.

4.Conclude a contract

A contracted supplier can become a franchise supplier, and we will purchase according to demand.

5, order purchase

The supplier will deliver the goods to the e-commerce A logistics center on time and in accordance with the contract.

6.Sales

After the e-commerce A logistics center confirms the quantity and quality of the goods that have arrived, the relevant products can be sold overseas on the e-commerce A sales platform.

7. Settlement

8. Bad handling

Relationship management

1. Frequently exchange and communicate information about costs, operation plans, and quality control between suppliers and manufacturers to maintain the consistency and accuracy of information.

2. Implement concurrent engineering. Manufacturers involve suppliers in the product design stage, so that suppliers can provide relevant information on the performance and functions of raw materials and components, create conditions for the implementation of QFD (Quality Function Configuration) product development methods, and bring the value needs of users Timely conversion to the quality and functional requirements of suppliers' raw materials and components.

3. Establish joint task forces to address issues of common interest. A team-based working group should be established between the supplier and the manufacturer, and the relevant personnel on both sides work together to solve various problems encountered during the supply process and the manufacturing process.

4. Suppliers and manufacturers frequently visit each other. Suppliers and manufacturers' procurement departments should visit each other frequently to find and resolve problems and difficulties in their cooperation activities in a timely manner, and establish a good atmosphere for cooperation.

5. Use electronic data interchange (EDI) and Internet technologies for fast data transfer.

Online management

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. 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. 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

Supplier management and evaluation online management function: The supplier applies for registration as a supplier company through online registration. After proofreading and verification of the supplier registration information, the supplier truly registers as a supplier on the procurement network; the buyer can authenticate the supplier. , Making it a potential supplier of its own; a supplier with a supply qualification is called a formal supplier; a buyer can evaluate the formal supplier and select a qualified supplier.

Quality, Cost, Delivery, Service, Technology, Asset, People and Process, collectively referred to as QCDSTAP, which is the number of each English word one letter. The first three indicators are common to all industries and are relatively easy to count. They are rigid indicators and are the direct performance of supplier management performance; the latter three indicators are relatively difficult to quantify and are soft indicators, but they are the basis for ensuring the first three indicators. Service indicators are in the middle, which is an important performance for suppliers to add value. The first three indicators are widely accepted and applied; the understanding and understanding of the remaining indicators are uneven, and their implementation can reflect the level of management suppliers.

Quality index (Quality)

Commonly used is the million defective rate. The advantage is that it is simple and easy to implement. The disadvantage is that the ratio of a screw to an engine worth 10,000 yuan is the same. Any quality problem is considered a defective product. Suppliers can increase the overall pass rate by manipulating the pass rate of simple, low-value products. Standards vary widely across industries. For example, in the various and small amount industries with many types of purchases and small purchases, the rate of 3,000 defectives is the world level; but under the zero-defect standard for large-scale processing industries, 80% of suppliers with such quality levels Eliminate objects.

Cost indicator (Cost)

Annual price cuts are commonly used. It should be noted that the purchase price difference is combined with the total price reduction. For example, the annual price reduction is 5%, and the total cost savings are 2 million. In practice, the statistics of the purchase price difference is far more complicated than it seems. I believe those who have experienced it have the same feeling. For example, when the new price will take effect: the buyer determines the delivery date and the supplier presses the order date-these must be agreed with the supplier in advance.

On Time Delivery

On-time delivery rate is equal to quality and cost. The concept is simple, but there are many calculation methods. For example, per-piece, per-order, per-order line, and on-time delivery rates may all be different. Generally use percentage. The disadvantages are the same as the quality million defect rate: the ratio of a screw to an engine is the same. People on the production line will say that you can't assemble products without any one. Makes sense. However, from the perspective of supply management, a screw with a production cycle of only a few days is not the same as an engine with a lead time of several months in procurement.

Service indicator (Service)

Services cannot be counted intuitively. However, service is an important part of the value of a supplier. The late IBM Chief Procurement Officer Gene Richter, the three-time "Purchasing Gold" winner of the "Purchasing" magazine, summed up his life's experience, and one thing is to affirm the value of the supplier's services. The service is invisible in price but obvious in value. For example, the same supplier, one has design capabilities, can make reasonable suggestions on the design of the purchaser, and the other can only be processed according to the drawing, which one is of great value, it goes without saying.

Technical indicators

For industries with high technical requirements, the key for suppliers to add value is because they have unique technologies. One of the tasks of the supply management department is to assist the development department to formulate a blueprint for technology development and find suitable suppliers. This task is crucial to the company's success in a few years and should be an indicator of the supply management department, which is regularly evaluated. Unfortunately, the supply management department is often busy with daily reminders, quality, and price negotiations, has no energy or interest in the company's technology development, and casually chooses suppliers, laying the root of all kinds of problems a few years later.

Asset Management

Supply management directly affects the company's asset management, such as inventory turnover and cash flow. Supply management departments can transfer inventory to suppliers through Vendor Managed Inventory (VMI), but more importantly, reduce inventory throughout the supply chain by improving forecasting mechanisms and procurement processes. For example, in the US semiconductor equipment manufacturing industry, due to the cyclical nature of the industry, over-forecasting and over-production are very common. Large companies frequently write off tens of millions of dollars of inventory. In the end, the entire industry seems to have made a lot of money, but after deducting expired inventory, there is little left. However, some companies have successfully reduced their inventory through improved forecasting and procurement mechanisms, thus becoming industry leaders. Therefore, the performance indicators of the supply management department should include inventory turnover. This can also avoid over-purchasing for price concessions.

People and Process

For the supply management department, the quality of employees directly affects the performance of the entire department and is also the key to gain respect from other departments. School education, professional training, work experience, and job rotation are all ways to improve the quality of employees. Corresponding indicators can be established, for example, 100% of employees receive one week of professional training each year, 50% of employees have passed professional procurement manager certification, and the job-hopping rate is less than 2%. ^[3]