Sunday, July 15, 2012

FACTOR IN SELECTING SUPPLIER


FACTOR IN SELECTING SUPPLIER

·         Technical ability
o   Do they have the technical ability?
o   Is there a program of product development and improvement?
o   Can they assist in improving your product?
·         Manufacturing capability
o   Can they consistently meet the specifications and quality desired?
§  Quality control program
§  Competent personal
o   Do they have good manufacturing planning and control systems?
§  To supply information on delivery
·         Reliability
o   Reputable
o   Stable
o   Financial strong
·         After-sales service
o   Service organization
o   Supply of spare part
o   Technical support
·         Supplier location
o   Location may effect to delivery time
o   Local inventories
o   May be required for after-sales service?
§  Will your customer require service?
·         Price
o   Not always the lowest price
o   May include the other service
·         Other consideration
o   Credit terms
o   Willingness to hold inventory
o   JIT
o   Information technology

Copyright @ Arnold, Chapman and Clive: Intro to Material Management, 6th Ed.

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