SUPPLIER PARTNERSHIP

The cost of raw materials, services and commercially available

components contribute to a major portion of total cost of the product .All
of these are obtained from suppliers. Hence the total cost and quality of
the final product to a great extend depends on the supplier quality.

Thus it is clear that a strong bond with suppliers is to be established to

improve the quality of the products that finally leads to better customer
satisfaction.
 I. PARTNERING
As the organization gets services / materials from the
suppliers , the organization becomes the customer of the
supplier.
Partnering is defined as:
 long-term commitment between two or more organisations
 particularly to achieve specific business goals / objectives
 Which is to be achieved by optimally using each partner’s
resources.
The following are adopted to achieve goals in a
partnership namely:
Work to-gether to focus understanding.

Share motivation for quality goods.

Help each other to do a good job.

A. WORK TOGETHER TO FOCUS
UNDERSTANDING
It is essential that careful instructions are given to the supplier. This is
done as follows:
Make sure that the suppler understands:

Avoid verbal orders.

Go beyond simply giving clear directions. Try to understand the

capabilities of the supplier.

Work with supplies to understand what is wanted and what is

possible.
B. SHARE MOTIVATION FOR
QUALITY GOODS
Adopt the following to motivate suppliers:

Award bonuses for excellent work, delivery a head of

schedule and so on.
Give recognition and praise for a job well done.

Promise continued business in long term and share

burdens.
Work together to make an impact.
C. HELP EACH OTHER TO DO A
GOOD JOB
The following may be adopted for this:
Help small vendors.

Help to train the supplier’s employees.

 Ask supplier for help.

II. sourcing

The three types of sourcing are

Sole sourcing

Multiple sourcing and

Single sourcing
A. Sole sourcing

This may be due to factors such as monopoly in the

market, technical specifications, patents and so on.
B. MULTIPLE SOURCING
In this case the organization goes in for two or more
suppliers for an item.

Selection of suppliers and proportion of business

given is based on factors like price, quality and
delivery
C. SINGLE SOURCING
In this case , organization goes in only for one supplier
for an item even when suppliers are available.

This is usually done to go in for long term partnering.

III. SUPPLIER SELETION
Select the supplier keeping the following conditions in mind:
The supplier should be able to understand the
management philosophy (TQM) followed by the
organization.
The supplier also should be adopting a sensible
management system.
The supplier should have the capability of supplying the
parts / materials as per the quality required.
The supplier should be sincere in putting into
effects things as being stated in the contact.

The supplier should have a proper quality system

like ISO 9000 and so on.
THANK YOU !