SUPPLIER PARTNERSHIPREPORTER: NAZARENO, JOEY S.6.4 Supplier Selection6.5 Principles of Customer/Supllier Relations6.6 Supplier Certification

6.4 SUPPLIER SELECTIONexternal entity that supplies relatively common, off the shelf, or standard goods, or services. (business dictionary)the stage in the buying process when the intending buyer chooses the preferred supplier(s) from those qualified as suitable (Westburn Dictionary)

Product component or serviceInsource(Produce)Outsource(Buy)Supplier SelectionSupplier Selection

Ray Carter 10 Cs SUPPLIER EVALUATIONCompetenceCapacityCommitmentControlCash

6. Cost 7. Consistency8. Culture9. Clean10.Communication

6.5 PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS

Both the customer and the supplier are fully responsible for the control of quality with mutual understanding and cooperation between their quality systems.Both the customer and the supplier should be independent of each other and respect each others independence.

6.5 PRINCIPLES OF CUSTOMER/SUPPLIER RELATIONS

3. The customer is responsible to provide the supplier with clear and sufficient requirements so that the supplier can know precisely what to produce.

4. Both the customer and the supplier should enter into a non-adversarial contract with respect to quality, quantity, price, delivery method , and the term of payments.

5. The supplier is responsible for providing the quality that will satisfy the customer and submitting necessary data upon the customers request

6. Both the customer and the supplier should decide the method to evaluate the quality of the product or service to the satisfaction of both parties..

7. Both the customer and the supplier should establish in the contract the method by which they can reach an amicable settlement of any disputes that may arise.

8. Both the customer and the supplier should continuously exchange information that will improve product or service qlty.

9. Both the customer and the supplier should perform business activities such s procurement, production and inventory planning , clerical work, and systems so that an amicable and satisfactory relationship is maintained.

10. Both the customer and the supplier, when dealing with business transaction, should always have the best interest in the end user in mind.

6.6 SUPPLIER CERTIFICATIONEIGHT CERTIFICATION CRITERIA(by Customer/supplier technical committee of ASQC)

The customer and supplier shall have agreed upon specifications that are mutually developed ,justifiable, and not ambiguous.The supplier shall have no product-related rejections for a significant period of time.The supplier shall have no nonproduct-related rejections for a stated period of time.The supplier shall have no negativenon-product related incidents for a stated period of time.

5. The supplier shall have a fully documented quality system.6. The supplier shall have a successfully passed an on-site system evaluation.7. The supplier must make inspection and tests.8. The supplier shall have the ability to timely provide inspection and test data.

Benefits of Certification:1.) Eliminates receiving inspection, which allows the supplier to ship directly to stock.2.) A customer/ supplier partnership is created with partner being responsible for their appropriate quality.3.) It also reduces the number of suppliers to a manageable level.

THANK YOU!

SUPPLIER: external entity that supplies relatively common, off the shelf, or standard goods, or services. (business dictionary)

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