Supply Chain Chapter 7

ISO 9000

-A series of management and quality standards in design, development, production, installation, and service -companies wanting to sell globally will seek this

Benefits of Supplier Certification

1. Building long term relationships 2. Reducing time spent on incoming inspections 3. Decrease supplier base 4. Recognizing excellence

8 Quality management principles of ISO 9000

1. Customer focus 2. Leadership 3. Involvement of people 4. Process approach 5. Systems approach to management 6. Continual improvement 7. Factual approach to decision making 8. Mutually beneficial supplier relationship

Goals of supplier development programs

1. Lower supply chain cost 2. Increased profitability 3. Increased product quality 4. Near perfect on-time delivery

Benefits of Supplier Recognition Programs

1. Motivate suppliers to perform better 2. help to improve supplier loyalty 3. encourage suppliers to adapt to the company's culture 4. helps to create entry barriers for competitors 5. encourages supplier participation in product innovation

Tools of Supplier Relationship Management (SRM)

1. Sourcing Analytics 2. Sourcing Execution 3. Procurement Execution 4. Payment and Settlement 5. Supplier Scorecarding 6. Performance Monitoring

Keys to Successful Partnerships

1. Trust 2. Shared Vision and Objectives 3. Personal Relationships 4. Mutual Benefits and Needs 5. Commitment and Top Management Support 6. Change Management 7. Info Sharing and Lines of Communication 8. Capabilities 9. Continuous Improvement 10. Performance Metrics

Key points of Supplier Relationship Management (SRM) systems

1. automation is meant to handle routine transactions 2. integration spans multiple departments 3. visibility of info 4. collaboration thru info sharing 5. optimization of processes

Current trends in SRM

1. close alignment of sourcing and negotiation with SRM 2. focus on cross-functional engagement 3. focus on innovation 4. investment in people and 'soft skills' 5. more robust measurement

Criteria for Internal Certification Programs

1. no incoming product lot rejections 2. No incoming non-product rejections 3. ISO 9000/ Q 90000 4. Performance metrics 5. Fully documented process 6. Supplier's processes stable

Functions of supplier development programs

1. provide information about products 2. training suppliers in LEAN and Six Sigma

Benefits of ISO 14000

1. reduced energy consumption 2. reduced environmental liability 3. reduced waste and pollution 4. improved community goodwill

ISO 14000

A family of standards for environment managment

Process used in continuous improvement

Plan, Do, Check, Act