The Plan:
Supplier [/suh-plahy-er] Development /[di-vel-uhp-muhnt] – “determining and implementing the best techniques and/or business-to-business relationship processes needed to secure materials, items and/or resources required to meet business demands”
The Supplier CORETM program is structured to help a company to develop and launch a strategic partnership approach with key suppliers. Profitability is addressed by analyzing and developing solutions for the fundamental issues of cost, quality, market responsiveness, and technology, coupled with leading edge trends such as global sourcing and lean enterprise principles. The objective is to provide the business guidance and expertise to help a company to develop and maintain a reliable, agile and motivated supply base.
The Strategic Elements:
Business and economic drivers in supply chain management are forcing organizations to hunt for the perfect blend of strategic suppliers. Our Supplier CORETM program guides a company through the critical steps of implementing a strategic supplier partnership program. Success is achieved by implementing the following 6-Step action plan:
Establish a Commodity Matrix:
The program begins by working with the company to assess the relative strategic importance of all goods and services that are purchased. The output this phase is a Commodity Matrix that is used to identify critical commodities and associated suppliers.
By working with the management team and supporting purchasing data, the objective is to identify and designate company specific objectives and expectations such as:
- Total Cost Targets
- Responsiveness
- Quality Level
- Vendor Management
- Product/Service Features
- Technology Utilization
- Vendor Control Points
- Reporting System
- Key Performance Metrics
Conduct Supplier Assessment(s):
The second phase of the program is Initiate a Supplier Assessment /Operational Analysis that will be used to benchmark the supplier’s capabilities based on twenty-two business-critical areas. This assessment includes a review of the supplier’s controls and capabilities in areas such as business structure, inventory management, personnel, cost control, capacity, project management and prevention.