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Sourcing: Development Of Supplier Processes And Techniques

By Author: Leelinesourcing
Total Articles: 19

The development of new suppliers should be planned and developed well in advance of the scheduled date. This article will be elaborated according to the general steps of developing new supplier according to the order, let the reader friend quickly master the process and skill of developing supplier.


The requirements described here mainly include the following: o Requirements when to develop successfully; o what raw materials or parts are needed; how much is required in o years / months; o the nature of the enterprise to be developed as a supplier; O what kind of production capacity, quality level is required for suppliers, O requirements are local suppliers or can be anywhere near.

Figuring out the problems above will lead to much more clarity in the search for suppliers, thus reducing the amount of work that is wasted.

Preparation of a supplier development schedule for the project

It would be preferable to develop a schedule of time according to the steps taken by the development provider, which would not only clarify the specific work on the development of new vendors but also minimize the possibility that the planned dates would be delayed.


By identifying the needs of the new vendor, the first step would be to seek information or information on new vendors in accordance with the specific work of developing in accordance with the prepared schedule.

There are a number of ways to get the information you need, such as visiting the Internet, finding a phone book (yellow pages) , attending exhibitions, making introductions and so on. Please refer to the relevant contents of the procurement survey in the supply management section.

In general, there are several suppliers available through a variety of means and may request initial screening on the basis of various aspects of the enterprise's requirements for new suppliers to be developed, leaving three to five suppliers open for further contact

Initial contact

Appropriate contact methods should be used to reach out to vendors. In general, for the first time, use telephone contact as far as possible and communicate clearly with the relevant business personnel of the supplier the purpose of their contact, their own needs and a preliminary understanding of the supplier's products. If it's not a special case, don't ask a supplier to quote the first time, and if you don't know the basics of a supplier, what's the use of getting its quotation? Even if the price it quoted was low, did it decide to buy it? It also creates the false impression that the customer is only interested in the price.

After initial information has been obtained by telephone contact with the vendor, different actions should be taken based on the proximity of the location of the selected vendor. Suppliers can be asked to bring their business profiles and related samples with them to increase the effectiveness of the talks, and not only to get as much information from suppliers as possible, at the same time, the basic requirements of the enterprise to the supplier and the requirements for the raw materials to be expressed as clearly as possible to the supplier, if possible and necessary, to take a look at the production site, it will increase the suppliers'grasp of the products they want. Because of the technical and technological confidentiality involved, bringing a supplier to production site visits is explicitly prohibited in many enterprises.

If it is a long distance supplier, it would be inappropriate to hastily ask the supplier to come from a distance. It is appropriate for the supplier to send the information and samples by express mail, from the supplier's data / sheep products can be a measure of its strength. In addition, there is a way to get to know suppliers by visiting the vendor's web page.

Whether the supplier is far or near, it is necessary to ask the supplier to fill out a "supplier questionnaire" . Table 6-2 is a vendor questionnaire used to obtain some basic information about vendors during the initial contact phase.


This step does not have to be taken and it would be useful for the procurement staff to "step on the ground" before the vendor is formally tried by the supplier. As more and more enterprise supplier development work is done by a development team that includes engineering and product management personnel, if the purchaser does not have a preliminary understanding of the supplier's plant, in the unlikely event that the actual production site of the supplier is poor, there is no doubt that the procurement staff will be met with complaints and even censure by other members of the development team, who will think that the buyers are wasting their valuable time.

A preliminary visit to the factory is mainly to look at the supplier's production area and office area, such as production line production situation, production equipment, warehouse, inspection and measurement instruments, 5s status, etc. , may also be a preliminary investigation of the financial situation of the supplier. The aim was to obtain an initial overall impression of the vendor, which was imprecise, but it affected the decision of the procurement staff to take the next step with regard to the supplier.


Once you have some basic information about the supplier, what you want to know as a buyer is what kind of price the supplier can offer, and then ask the supplier to make a quotation, because the supplier also has a certain understanding of its potential customers. Before asking the supplier to quote, it is advisable to issue Rfq to all suppliers who wish to make an offer in order to give suppliers further access to some basic information on the material, it also allows suppliers to quote prices in the same price terms (currency, price terms, place of delivery, terms of payment, etc.) , which is very advantageous to the purchasing staff, thus facilitating the counter-offer of the procurement staff.

The official Audit of the factory

After bargaining with the supplier, it is generally possible to obtain a price that is generally satisfactory to the purchaser. If key materials are purchased, formal factory audits are required, except in exceptional circumstances, to enable the purchaser to obtain more accurate and detailed knowledge of the supplier's basic information, such as engineering skills, quality assurance capabilities and financial status. The reviewers of the purchaser are generally made up of procurement staff, line managers and engineering and technical staff. The focus of the various departments is different, and the procurement staff focus on some trade-related items, for example, delivery, production capacity, payment, financial status of suppliers, etc. . The quality system, inspection personnel and testing instruments of the supplier are of concern to the supervisor, the concern of engineers and technicians is the equipment, machining precision and engineering ability of the supplier.

There is no doubt that in the development team the purchaser plays the role of "locomotive" , the progress of the whole development process, all aspects of coordination should be controlled by the procurement staff. In the whole process of developing suppliers, there are two most time-consuming processes. The first is the review and review of problems identified during factory audits, not only will this delay and the length of time be prolonged, the two parties concerned will feel very tired, the second is to provide samples repeatedly, making both sides more and more unconfident. The two sides should actively cooperate with each other in solving these two problems and overcome difficulties in the shortest time.

In factory audits, you need to be rigorous and not critical, stick to the Seek truth from facts principle and don't take a magnifying glass to look at some of the small issues that have been identified during audits. In fact, it's hard to find a company in the world that is rigorously vetted but can't spot a problem, but if it does, it can only be said that the reviewers are not careful.

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Read More: https://leelinesourcing.com/

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