integration of suppliers

In the past years many manufacturers reduced the  amount of added value and outsourced  tasks to suppliers. So they could concentrate their efforts to core competences and being more productive. Today those factories are dependent on their suppliers. This tool shows you how to integrate suppliers into your supply chain.

 In the following situation you might use this tool:
  • the quality of the supplied material doesn’t complies to the company requests
  • the suppliers of the factory aren’t integrated properly into the company network. As a result they waste resources in case of high stock
Which goals could be reached?
  • improve quality of delivery from suppliers, third party service provider or subcontractor
  • cost reduction through a better integration of suppliers – reduction of stock levels
  • improve processes and interfaces between supplier and customer
  • analysis of weak points
  • creation of long term partnerships
Step by step guide:
  1. selecting of suitable suppliers: key figure method, point rating system or price & decision analysis
  2. presentation to the supplier: introduction of goals, benefits and rules
  3. definition of working area, basic calculation, key figures and organisation of information flow from supplier to manufacturer
  4. planning and implementing of supply chain – kaizen and value analysis
  5. follow up process: controlling and optimisation
Our experience:

Medium sized enterprises quite often don’t collaborate with their suppliers. Both parties could benefit from using common resources and better intercommunication. A proper planning of deliveries could save time and money. An integrated delivery systems needs to be built on mutual trust.

Benefits / Advantages:
  • better quality of supplied components
  • increasing of the delivery service through collaboration
  • reducing of stock levels through better communication with suppliers