Inbound Materials – http://inboundmaterialsmysteries.blogspot.com
In a recent discussion about Supplier Accountability and Reliability, I was asked to define how you can make this happen with suppliers and give my experience of the last 14+ years working with inbound material suppliers.
My first discussion is always internal – WHAT DO WE NEED? I know, sounds so simple, but in reality we have many expectations from many groups or functions. Planning needs it now, Purchases and F&A want it at the lowest price, R&D and Quality want the best on the market, Inventory control wants the least amount possible, and Receiving just wants it during their operating hours. Each of these functions have goals and expectations that probably are not being coordinated. Hosting and internal meeting on these topics will generally net you a base line of internal alignment needs and a path to move forward with the supplier.
I’ve found over the years, I can get whatever and whenever I want if I ask for it from the supplier, however, the question becomes – can I afford it? Just like the local mail delivery vs Fed Ex, there are different level of services for different prices…knowing the above will help you decide how to get what you can afford or negotiate with purchases for something different than you have today.
Once you have a good idea of what you want and what you can afford, it’s time to invite the supplier in for a rich and in-depth discussion – remember to invite (or demand it) more than the sales rep – just like us each function of the supplier has a different role and you will need participants from Sales, Customer Service, Production and Shipping to ensure you have a full picture of what is really possible. Once the meeting has been assembled, you will need to go through expectations and limitations on your side and create an open an honest environment for the supplier to discuss what they can do. Once you have the data, you can create an action plan of next steps, and regular follow up meetings if necessary to get to the long term goal. Many times what both sides needs is not easily changed overnight and will take some diligence on both parts and follow up to make the ideal supply chain a reality.
I’ve created a more detailed discussion on the how-to’s if you are interested – it’s located at:
Supply Change -
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