Supplier Maintenance and Development Introduction Sourcing New Suppliers Qualification & Maintenance Supplier Development

Supplier Qualification Workflow for XYZ Company Design Engineering Criteria Purchasing Criteria Operations Quality Design Engineering & Component Manufacture Experience working with Product Safety Standards, EU Directives, etc Price . Good On-Time Delivery of Product and services Effective ECN control Good Product Identification and Traceability process Packaging Standards SPC Controls Certified Inspection & Test Labs ISO 9001: Registered Firm RoHs Compliant

Approved Supplier Interaction Space ISO, ATEX and RoHs Compliant Facility 1st Tier SUPPLIER Design Engineering Services Components 2nd Tier Supplier Parts & Materials Inspection & Testing Global Supply Network Software

Approved Supplier Interaction Space ISO, ATEX and RoHs Compliant Facility 1st Tier SUPPLIER Design Engineering Services Components 40% Subcontracted 2nd Tier Supplier with 3rd 4th Tier Supplier’s 30% Subcontracted Parts & Materials Inspection & Testing 100% Subcontracted Global Supply Network Software 25% Subcontracted PFR Components 100% Subcontracted

Review and Decision Making Process Focus on QUALITY at all levels of the supply chain Validate all certifications or claims of compliance. Ask the right QUESTIONS…..which is any question you may have about the supplier Don’t be afraid to ask about subcontracted supplier qualifications and who qualified / certified them. Where applicable, review their customer scorecards Do your RESEARCH before you sign the contract Understand the supply chain interactions Inquire about the suppliers customer complaint handling process Review the supplier’s Quality Management System Review the supplier’s corrective and preventive actions system to see if it is effective in resolving internal and external nonconformities that arise. Get ACTIVE Participate in industry forums and conferences.

SWOT Analysis Strength Weakness Opportunity Threat Global Footprint Very Low PPM history with good process controls ISO, ATEX, Registered Firm RoHs Compliant Based on recent customer scorecards, very Good Quality & OTD (On-Time Delivery) hist0ry. Company not well known Price Subcontracts Testing and Final Inspection of some products. Some PFR (Purchase for Resale) subcontracted Products Etc….. Opportunity Threat ?

Managing Sub-Par Suppliers

Supplier Maintenance & Development Maintain a supplier scorecard for your critical supply base and keep it up-to date. Rate your suppliers on an annual or semi-annual basis and place any poor performers on probation or promptly remove them from your ASL. Ensure your supplier’s know how to respond to your concerns or request for corrective actions.

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