Supplier Evaluation Essay

Lean and Six Sigma are recent developments in continuous improvement methodology that have been popularized by several companies. The success and balancing nature of these methodologies has led to their combination into a single methodology, commonly called Lean Six Sigma or Lean Sigma. Many of companies throughout the world implement Lean-Sigma with variable degree of success. Also, they involved lean- sigma to tackle problems such as production defects, and lean manufacturing, which aims to remove all processes that don't add value to the final product. But many of those companies have come away less than happy. Once the main target desired has been gained, the motivation often reduces and the improvement programme can fail and fall back into old habits. There are several factors will led the Lean-Sigma users find it difficult to

Mr. Sherwood received an undergraduate degree from Arizona State University in Management, with a focus on Supply Chain Management. He also earned his MBA from the University of North Carolina at Greensboro. Over the past 12 years he has worked for Volvo, Boeing and Amazon as a buyer, and procurement and supply chain strategist. His responsibilities are to ensure that products are being received from suppliers in a timely manner and that the quality of the goods are within acceptable limits. One of the ways that he ensures that these objectives are met is to conduct periodic process evaluations with the suppliers he works with. When Mr. Sherwood does an evaluation he said he is typically looking to see that there is consistency in the way work is completed and quality of the merchandise produced (2016).

Drive Performance improvement in active supply base: If you have an existing relationship with a supplier, performance benchmarking can be a helpful tool for driving supplier relationship management activities. Instead of annual or periodic contractual assessments, review of performance metrics should be continuous process. Such an approach will allow you to stay ahead of supplier issues and facilitate performance benchmarking against their industry peers. Additionally, if you have a “problem” vendor, you can more easily determine where to assign additional resources to help remediate the risks.

Identifying value is the first stride of the lean approach (Wang 2013, p. 15). It is a very vital step in the process of implementing the lean approach because it addresses the question of if or not the project should commence or not, and whether it will be on any value to the business and customers. When value is identified, the business then maps the value stream, which describes the steps and processes that need to be done and eliminate steps that are not necessary, or that which do not and any value to the business or customers. Creating flow denotes streamlining the steps delineated from the previous step so that the products flow efficiently towards the customer at every process. The next step is establishing pull, which denotes the

The system of interconnected businesses used to push a product from supplier to consumer is defined as a supply chain. Supply chain management focuses on managing the supply chain in an effort to improve the quality and time it requires to manufacture a product. In addition to implementing supply chain management, a helpful lean production practice called Just-in-time can be used to remove any waste present along the supply chain. The marriage of lean production and supply chain management creates lean supply chain management, which provides a much leaner and more economical supply chain for the product to flow through.

The purpose of this literary review is to achieve insight into lean manufacture and how it can be applied within a manufacturing environment. With global contention, it is important for maker to remain competitive in their respective marketplace and to understand the principles of lean manufacturing and the step to implement them to ensure that they are on the leading edge of manufacturing. This literary review describes the below mention principles.

The system of interconnected businesses used to push a product from supplier to consumer is defined as a supply chain. Supply chain management focuses on managing the supply chain in an effort to improve the quality and time it requires to manufacture a product. To implementing supply chain management, a helpful lean production practice called Just-in-time can be used to remove any waste present along the supply chain. The marriage of lean production and supply chain management creates lean supply chain management, which provides a much leaner and more economical supply chain for the product to flow through.

Performance Measurement (KPIs) is a critical part of the global supply chain management. Advantages include expertise and specialization. Therefore, developing effective methods to layout the operations of better supplier performance measurement (KPIs) can significantly reduce supply costs, improve quality, and optimize service levels so that a business can run their logistics operations more efficiently. The disadvantage to this is the risk of streamlining the business when there is an unexpected problem such as, when a supplier has a technical problem and the buyer may have to negotiate on short notice with a replacement supplier.

I declare that all materials included in this essay/report/project/dissertation is the end result of my own work and that due acknowledgement have been given in the bibliography and references to ALL sources be they printed, electronic or personal.

Procurement strategy is the important strategy involve the supply chain management, It provides the business could access the opportunities to reduce the cost, makes the quality promise, consequensely, gain the profit. The supplier selection process starts with the requirements of the materials for the business. The processes of the supplier selection include supplier identification, supplier evaluation and set the contract with the supplier. Supplier selection is designed to ensure their quality, safety and efficiency.

Supply chain management is composed of different elements that play a crucial role in the survival and success of a business. Supply chain management is a chain of elements that consists of customers, planning, purchasing, inventory, production and transportation which are managed through tactical, strategic and operational levels. Technology covers a major functional role in supply chain without which the activities and responsibilities of supply chain may not be achieved. The global issue of supply chain revolves around communication where it is important to communicate in supplier communities. Other issues of communication involve language barrier and difference in cultural behaviors. Other considerations involve political stability of the country in which the businesses are resourcing. Some factors to be aware of the type of governments in the market, the level of civil unrest and the possible terrorism concerns. Sustainable supply chain is a critical business issue where companies need to strengthen their supply chain by setting stronger policies and higher standards for environmental and social performance. Supply chains are critical links that synchronizes the inputs of the companies with its outputs. Critical businesses challenges are always involved in any type of business some of them are in concern with supply chain are bringing the prices down, making sure of on time delivery and decreasing transportation time for a better reaction to business

have a Supplier evaluation matrix or model in place. This paper tries to bring in a typical

Information and communications technologies are revolutionizing the scope and scale of e-supply chain infrastructures. Online data exchange is transforming business practices, allowing managers to capture and track complex data more effectively. Orders and various products related to that order can easily be traced. It also is possible to exchange information among entities within the value chain, thus greatly improving customer-provider relationships.

The main role of “lean” supply is to strengthen the relationship and collaboration between suppliers- customers. According to Ellram [10], the author has defined the concept of lean as the continuous bond between the organizations which concerns to the contract and commitment in the long term relationship and a shared advantages and risks. Additionally, there are also some other features after the relationship and commitment between suppliers until customers. Those features are the trade of concepts (communication), data, and advantages such as merge inR&D, long-term relationship, and so forth [38; 40; 9]. The concept of lean supply also is being as the start of the enhancement in system in terms of taking the proactive role in improving the usual technique for similar advantages throughout the supply chain. As from the authors, the suppliers will work on working with manufacturer and ongoing collaborate until customers in both direct and indirect ways [13].

Stage 9 – Choose supplier – based on the previous stages the purchaser will identify which supplier they will make relationships with, maybe being strategic alliance or partnerships.