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Supplier Management

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Essay title: Supplier Management

Factors Item Measures My opinion

Supply Base Optimization Ave. Number of Suppliers per part Too large today but if we can achieve the "two plus one" strategy

long term, then it will become a large improvement

Tiering of Suppliers Working with favorites today. R&D, Manufacturing,

SJ Purchasing, M Purchasing, all have their own favorites.

Extent of part bundling Needs more strategic clarification

Buyer-Supplier Relationship Dev. Relationship with Supplier This is a major deficiency. Key Supplier communications start with R&D

then move to SJ Purchasing, and finally end up with Penang.

Examples of miscommunications include Panasonic who's executives still think

Paul Martin makes sourcing decisions. Kyocera and Philips who transferred

products from SJ to Penang, and TDK who get two different forecasts between

SJ and Penang.

Trust Building To many contacts for the Suppliers to build trust

Joint problem solving Not taking advantage of this.

Quality training with supplier Supplier processes not clearly understood

Timely production info sharing Not performed in Penang. STP/MTP is only info shared with Supplier

Cost information sharing Not practiced well. LL should know the Supplier cost structure better.

Use of formal supplier evaluation Not sure where we are with this. Still trying to define. Once defined, will we use?

and feedback

Supplier/Buyer concern for fair profit Material Engineers taking lead for cost reduction. Why?

Supplier Capability Auditing Quality Performance It should be a standard practice for all of our Suppliers to improve their

Cost Performance performance ( quality, cost, responsiveness,

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