Supplier Relationship

1235 Words5 Pages
Supplier and Partnering Processes
For many businesses, goods and services provided by suppliers or partners account for a significant portion of the cost and value of the final product. Suppliers include not only companies that provide materials and components, but also distributors, transportation companies, and information, healthcare, and education providers. Key suppliers might provide unique design, technology, integration, or marketing capabilities that are not available within the business, and therefore can be critical to achieving such strategic objectives as lower costs, faster time-to-market, and improved quality. Organizational partners might include educational institutions that collaborate on research and training.
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Analytical reports and on-line data are used to identify material defect trends. Performance reports are sent each month to key suppliers. Joint customer-supplier teams are formed to communicate and improve performance. A supplier management task force of top managers directs current and strategic approaches to improving supplier management practices. Finally, communication, feedback, and recognition or awards are important practices in supplier and partnering processes. For instance, the Fastener Supply Corporation, which distributes fasteners, electronic hardware, and other products to over 300 customers makes frequent contact with its 250 suppliers, invites them to company functions and shares such information as customers’ forecasted requirements.5 Feedback should provide timely and actionable information to suppliers to lead to improvement and ensure that suppliers meet the organization’s performance requirements. At Fastener, any potential performance problems are brought to attention with prompt notice and immediate feedback. An annual award dinner recognizes outstanding suppliers for quality and continuous improvement. Many companies such as Bethlehem Steel, Miller Brewing, and Honda, make a point of delivering supplier awards not only to upper management at a fancy banquet, but also to the workers on the shop floor. "It 's one thing for the boss to say that
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