Supplier development and management is the core of the whole procurement system, and its performance is also related to the performance of the whole procurement department. Generally speaking, supplier development includes: competitive analysis of supply market, finding qualified suppliers, evaluation of potential suppliers, inquiry and quotation, negotiation of contract terms, and final supplier selection.
In most multinational companies, the basic principle of supplier development is the principle of "Q.C.D.S", that is, the principle of paying equal attention to quality, cost, delivery and service.
Among these four factors, the quality factor is the most important. First of all, it is necessary to confirm whether the supplier has established a stable and effective quality assurance system, and then confirm whether the supplier has the equipment and technological ability to produce the required specific products. Secondly, cost and price, we should use the method of value engineering to analyze the cost of the products involved, and realize cost saving through win-win price negotiation. In terms of delivery, it is necessary to determine whether the supplier has sufficient production capacity, sufficient human resources and the potential to expand production capacity. Finally, the supplier's pre-sales and after-sales service records.
In the process of supplier development, we must first analyze the competition in specific classified markets, understand who is the market leader, what is the market development trend, and what is the positioning of major suppliers in the market, so as to have a general understanding of potential suppliers.
For example, in the resistor market, you need a resistor of 0805 today, so you don't have to go to those Japanese manufacturers because they have stopped production. At the same time, it can also give a suggestion to colleagues in the design department, try to use mainstream components in the market and reduce costs.
The resistance market is a market with less differentiation, more suppliers, easy transportation and easy substitution. In the injection molding market, it is more complicated. First of all, the products are very different. Some companies specialize in precision injection molding, while others focus on large workpieces. In addition, due to the high transportation cost of injection molded parts, localization is essential. You should evaluate whether the supply capacity of injection molding products in the local market exceeds the demand, the characteristics of major suppliers and their competitors, etc., so as to be prepared.
On the basis of these analyses, the purchasing department of the company can establish a preliminary supplier database and make corresponding product classification. Generally speaking, it can be divided into three categories: electronics, machinery and auxiliary materials. Electrons can be further divided into circuit boards, resistors, capacitors, inductors, diodes, integrated circuits and so on. Machinery is subdivided into plastic parts, metal parts, packaging supplies and so on. Auxiliary materials include chemicals, labels, tapes and other sundries.
The next step is to find potential suppliers. After carefully analyzing the market, you can get the contact information of suppliers through various public information and channels. These channels include active inquiry and introduction of suppliers, professional media advertising, Internet search and so on.
In this step, the most important thing is to conduct a preliminary screening of suppliers. It is suggested to use a unified standard supplier registration form to manage the information provided by suppliers. This information should include: registered place, registered capital, major shareholder structure, production site, equipment, personnel, major products, major customers, production capacity, etc. By analyzing this information, we can evaluate its technical ability, supply stability, resource reliability and comprehensive competitiveness. Among these suppliers, the list of suppliers can be obtained after eliminating the suppliers that are obviously not suitable for further cooperation.
Next, it is very important to arrange field visits to suppliers. If necessary, the quality department and process engineers can be invited to participate in the audit team, which not only brings professional knowledge and experience, but also contributes to internal communication and coordination.
On-the-spot investigation, a unified scorecard should be used for evaluation, and its management system, such as work instructions and other documents, quality records, etc., should be emphatically reviewed. This needs everything and cannot be omitted. More importantly, the following items:
The sales contract review requires the sales department to evaluate each contract and confirm whether it can be completed on time.
Supplier management requires the establishment of a licensed supplier list and effective control procedures.
Training management, with perfect training and assessment system for key personnel and detailed records.
Equipment management, maintenance and adjustment, with perfect control system and complete records.
It is very important to have a complete transmission system for measurement management and instrument measurement.
Communicate with team members in time during the inspection. At the end of the meeting, summarize the advantages and disadvantages of suppliers and listen to their explanations. If the supplier has the intention of improvement, it can ask the supplier to provide a report of improvement measures for further evaluation.
After the supplier audit is completed, an inquiry document is issued to qualified suppliers, which generally includes drawings and specifications, samples, quantity, approximate procurement cycle, required delivery date and other details, and the supplier is required to complete the quotation within the specified date. After receiving the quotation, carefully analyze its terms, thoroughly clarify the problem, and ask for written records, including fax and email.
The follow-up work is market analysis, which contains a lot of information. If possible, ask the supplier to make a cost list quotation, list the material cost, labor and management expenses, and clearly state the profit rate. Compare the quotations of different suppliers, and you will have a preliminary understanding of their rationality.
Before the price negotiation, we must make full preparations and set a reasonable target price. For small batch products, the core of negotiation is delivery time, which requires them to provide quick response ability; For products continuously produced by assembly line, the core is price. But we must ensure that suppliers have reasonable profit margins.
At the same time, price negotiation is a continuous process, and each supplier has its corresponding learning curve. After a period of supply, its cost will continue to decline. Reach a strategic alliance with excellent suppliers and push them to put forward improvement plans to save costs to the maximum extent.
In fact, every supplier is an expert in his own field, and it is often unexpected to listen to the suggestions of suppliers. Some suppliers actively recommend alternative raw materials, such as replacing Swiss products with Korean steel, which can save up to 50% of the cost and fully meet the requirements. This is a price reduction that cannot be achieved by negotiation alone. Through strategic alliance and participation in design, suppliers can effectively help us reduce costs.
Another very important aspect is the hidden cost. Procurement cycle, inventory and transportation are intangible costs, so qualified suppliers should be included in the timely delivery system to minimize inventory and reduce the total cost of the company.