Learning Curve…

MB0046 : Silver Line Manufacturers produce several varieties of automobile components. They have 3 to 5 suppliers who supply materials regularly. Recently, procurement manager of Silver Line discussed in the meeting that they have to look out for new suppliers since they would be expanding their business operations to many places. How do you think Silver Line have to go about this situation?

Posted on: October 19, 2011

MB0046  : Silver Line Manufacturers produce several varieties of automobile components. They have 3 to 5 suppliers who supply materials regularly. Recently, procurement manager of Silver Line discussed in the meeting that they have to look out for new suppliers since they would be expanding their business operations to many places. How do you think Silver Line have to go about this situation?  

Answer : Silver line manufacturers expanding their business operation to many places and they looking for new suppliers. Following are given below the criteria for new supplier:

Supplier Selection Strategies and Criteria

Supplier selection criteria for a product or service category should be defined by a “cross-functional” team of representatives from different sectors of your organization. In a manufacturing company, members of the team typically would include representatives from purchasing, quality, engineering and production. Team members should include personnel with technical/applications knowledge of the product or service to be purchased, as well as members of the department that uses the purchased item.

Supplier selection criteria:

  • Previous experience and past performance with the product/service to be purchased.
  • Relative level of sophistication of the quality system, including meeting regulatory requirements or mandated quality system registration (for example, ISO 9001, QS-9000).
  • Ability to meet current and potential capacity requirements, and do so on the desired delivery schedule.
  • Financial stability.
  • Technical support availability and willingness to participate as a partner in developing and optimizing design and a long-term relationship.
  • Total cost of dealing with the supplier (including material cost, communications methods, inventory requirements and incoming verification required).
  • The supplier’s track record for business-performance improvement.
  • Total cost assessment.

Methods for determining how well a potential supplier fits the criteria:

  • Obtaining a Dun & Bradstreet or other publicly available financial report.
  • Requesting a formal quote, which includes providing the supplier with specifications and other requirements (for example, testing).
  • Visits to the supplier by management and/or the selection team.
  • Confirmation of quality system status either by on-site assessment, a written survey or request for a certificate of quality system registration.
  • Discussions with other customers served by the supplier.
  • Review of databases or industry sources for the product line and supplier.
  • Evaluation (SUCH AS prototyping, lab tests, OR validation testing) of samples obtained from the supplier.
Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Author

Learning days (Calendar)

October 2011
M T W T F S S
« Sep   Nov »
 12
3456789
10111213141516
17181920212223
24252627282930
31  

Knowledge Bank (Archives)

I am on Twitter

Blog Stats

  • 498,419 hits

Enter your email address to subscribe to this blog and receive notifications of new posts by email.

Join 43 other followers

%d bloggers like this: