Outsourcing or Changing Suppliers - Things to consider:

Outsourcing or Change in Supplier Checklist for a Flawless Material Supply

Tickler Questions to start a rich conversation to ensure a flawless transition:

 

For each manufacturing site consuming this material:

1.     What is your production Strategy – Produce to Demand, Produce to Buffer, Produce to Inventory Level

2.     What is your promise to your customers – how do you handle spikes in demand

3.     Do you keep finished product inventory and if so, how many average days on hand

4.     Do you keep material inventory on hand, and if so, how many average days on hand

5.     Is this material shared across multiple sites, businesses

6.     Is this a critical material to production – is there a substitution plan if not available or issues arise

7.     Are there special or inventory restrictions for each site

8.     Is there a storage plan for temp controlled materials

9.     Do you have a transportation strategy

10.   Are there receiving restrictions – QA, Hours/Days, Space

11.   What are your QA requirements – stand forms/procedures

12.   Do you have e-communications available

For each supplied material – supplier to provide:

13.   Is this material constricted in demand or availability

14.   Are there multiple suppliers available and qualified for this supply

15.   What is typical lead time to replenish supply

16.   What is your average days of forward coverage available to the customer versus your supply strategy

17.   Are there environmental or temp restrictions in need of consideration

18.   Is there an upcharge to expedite

19.   What is the preferred transportation method and does it impact availability (rail vs truck – ocean)

20.   Is there a limitation of time to unload – impact to supply chain

21.   Can you get in larger or smaller increments if needed – cost impact

22.   Can you manage any of the quality needs to reduce time in schedule