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Course 4: Supplier management - Coggle Diagram
Course 4: Supplier management
Selecting A Vendor: :
When choosing a vendor, businesses should consider various factors
ability to supply all required products
lexibility to allow changes in orders
ability to constantly supply products or services
substantial catalogue of products or services
vendor's years in business
prices
delivery times
terms of business, and customer service.
All of these factors are important to ensure that the vendor selected is a reliable and professional partner in the business's success.
Selecting a vendor is a crucial activity for any business, as vendors provide both direct and indirect purchases necessary to produce and run a business.
Navigating supplier relationships in the COVID-19 era:
COVID-19 is causing ruptures in the supply chain, leading to canceled or ignored contracts, highlighting the importance of buyer-supplier relationships.
Procurement and supply chain management are more important than ever before.
In this emergency, relationships are more important than written contracts, but it's crucial to analyze key supplier contracts and pay attention to force majeure clauses.
The new normal is developing in business, and waiting for things to return to the way things were before the pandemic is not an effective or realistic strategy.
Simple rules to follow in preparing a SOW and a contract:
Clearly specify the objectives to be achieved
Seek input from the right people at the right time
Develop a well-organized table of contents
Specify the project plan, schedules, and milestones
Link payments to performance or progress
Specify where the deliverables will be performed
Learn from and do not repeat mistakes
Avoid incorrect, inconsistent, or contradictory statements
Define what is to be performed
Five Easy Steps To Risk Management in Procurement
Risk Ranking
Risk Mitigation
Risk Analysis
Risk Monitoring
Risk Identification
6.Adjust processes and policies to ensure more effective risk management.
7.Develop a plan for risk prevention and resilience after an incident
Ensure that every employee has a clear understanding of the policies and procedures related to risk management and is trained to implement them.
9.Identify potential risks and assess their impact on the company.
Take measures to minimize risk or maximize resilience after an incident.
How medical supply chains can diversify beyond COVID- 19
The demand for some medical supplies has skyrocketed during COVID-19, resulting in shortages.
About 80% of active pharmaceutical ingredients (API) come from abroad, typically China and India, and sourcing from one region creates a high risk
The pharmaceutical industry's motivation is lowering costs in the short term, which results in supply problems during emergency events like COVID-19.
Globally sourcing should look like a stock portfolio, not rely heavily on one region.
Healthcare systems need to have emergency plans that include mitigating shortages of medical supplies.
Producing domestically and globally is necessary to prevent shortages. It's essential to look for partnerships to produce domestically and use the global supply chain.
To evaluate and select a supplier
Methods
Third-party evaluations
Preferred lists
Supplier visits
Key supplier evaluation criteria
quality
performance
systems/philosophies
cost
management capability
customer focus
employees
For financial capability
It is also important to assess the supplier's financial stability and liquidity to ensure they can meet their financial obligations and invest in the future
Which can be done by reviewing their financial statements, credit reports, and other public records, as well as conducting interviews with the supplier's financial team
It is important to check the supplier's financial situation
Additionally, it is recommended to establish a risk management plan to mitigate any potential financial risks that may arise during the supplier relationship.