CHAPTER 9: SUPPLY REQUIREMENTS (Fundamental requirements of suppliers…
CHAPTER 9: SUPPLY REQUIREMENTS
4 steps process
Pre-selection - carry out a pre-audit and assess the cost
Evaluation – a more detailed evaluation and product qualification, agreeing a contract and objectives
Product qualification – a process audit to ensure that legal, approval, safety and environmental requirements are met. The product is then released for production
Development – working together according to key principles
Fundamental requirements of suppliers
high-quality end products cannot be built cost effectively from low-quality components.
Cost & Value
To find their prices and the prices of competitors from low-cost areas.
Competitive advantage can be achieved through value-added services, including low-cost storage, rapid response in dealing with warranty issues, ready access to spare parts, and improved logistics.
Customer expectations for timely service before, during, and after a sale continue to increase and, aided by the Internet and modern transportation methods, suppliers are responding to these demands.
On-time deliveries have become increasingly critical for success.
To make preparation to meet a need provide for entertainment especially to supply something for sustenance or support
Set and manage expectations about what will and what will not be delivered
Help a business understand and articulate what they are looking for and provide a framework for
them to make an informed purchase decision
do to satisfy the business' needs
Enable different products to be compared when buying off the shelf solutions
Inform cost and product pricing decisions
Provide a basis for testing the functionality of a produ
ISO creates documents that provide requirements, specifications, guidelines or characteristics that can be used consistently to ensure that materials, products, processes and services are fit for their purpose.
3 level in supply requirements
Meet the customer needs
Good delivery process
Complying the 7 rights in Logistics