Supplier performance

A specification agreed with a supplier is not a guarantee that all deliveries will fully comply with it and arrive in full and on time. A Certificate of Analysis adds confidence and if the supplier is accredited to the ISO 9000 series or a national equivalent it shows that the quality systems have been independently audited and found to be acceptable. However, there is no substitute for regular performance reviews, backed up as appropriate by audits of the manufacturing facilities and quality systems (including incoming raw materials). This is a very onerous and time-consuming exercise, well beyond the resources of most soft drink manufacturers. 

A Food Safety Act infringement caused by a substandard ingredient can be countered with a defence of due diligence . This requires the defendant to establish that all reasonable checks were made to ensure the ingredient was satisfactory and capable of performing as required. Case history is limited but the operative word for small companies must be reasonable . 

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Subcontracts enable you to choose the degree of control exercised over your subcontractors. With suppliers, your choices are often limited as you have no privileges. Control over your suppliers is therefore exercised by the results of receipt inspection or subsequent inspections and tests. If your confidence in a supplier is low, you can increase the level of inspection and if high you can dispense with receipt inspection and rely on in-process controls to alert you to any deterioration in supplier performance. 

Subcontractor/supplier performance will be evident from audit reports, surveillance visit reports, and receipt inspections carried out by you or the third party if one has been employed. You need to examine these documents for evidence that the subcontractor s quality system is controlling the quality of the products and services supplied. You can determine the effectiveness of these controls by periodic review of the subcontractor s performance what some firms call vendor rating . By collecting data on the performance of subcontractors/suppliers over a long period you can measure their effectiveness and rate them on a scale from excellent to poor. In such cases you should measure at least three characteristics quality, delivery, and service. Quality would be measured by the ratio of defective conforming products received delivery would be measured by the number of days early or late and service would be measured by the responsiveness to actions requested by you on scale of excellent to poor. The output of these reviews should be in the form of updates to the list of assessed subcontractors/suppliers. 

Analysis of data - Analyse performance of quality system based on feedback, conformity of product to requirements, trends and supplier performance... 

Having said this, it was felt therefore that there is a need for a book addressing analysis and characterisation of polymers from the point of view of what we wish to call the primary analytical question. Many excellent textbooks and reference works exist which address one or more individual analytical techniques, see, for example, references [1-10]. These books form the basis of the knowledge of the technique expert. They also contain many excellent and varied examples on successful applications of analytical techniques to polymer analysis and characterisation. There are also books which address the multitude of analytical techniques applied in polymer analysis, see, for example, references [11-24], However, a synthetic chemist may wish to know the constitution of his/her polymer chain, a material scientist may want to find out the reasons why a fabricated sample had failed. What technique is best or optimal to study chain constitution will depend on the situation. Polymer failure may result from morphological features, which needs to be avoided, a contaminant, a surface property degradation, etc. When a sample has been processed, e.g., a film blown, molecular orientation may be the key parameter to be studied. A formulation scientist may wish to know why an additive from a different supplier performs differently. It is from such points of view that polymer analysis and characterisation is addressed in this book. 

Once the areas for improvement have been identified, the details of data collected can be increased according to the requirements of the improvement and measurement effort. In some instances, decisions to track and measure product stewardship information (e.g., supplier performance) may be based on nonbnsiness criteria, such as responsible care compliance. 

The management system is owned by and is the responsibility of the top management, ft is incumbent on the management to review the overall effectiveness and currency of the system and the range of services offered by the laboratory. This should be done annually, and should include input from internal audits, clients, staff, and quality control records. The review should also consider supplier performance, wider management issues, and any changes that have affected the laboratory. The review should be used to... 

Supply management has to ensure a smooth and uninterrupted supply of raw materials by defining dear service level agreements with suppliers, planning raw materials, issuing procurement orders, and tracking and managing supplier performance. 

Parameter Quantification Relative impor- tance Supplier performance ABC 1 D... 

Supplier involvement the CER describes the use of audits to verify the responses of suppliers to Tioxide s environmental questionnaire, and continued monitoring of ore suppliers performance. One audit was carried out at one of the major ore suppliers. 

For the core LIMS, one must be careful not to be lulled into a false sense of security by the supplier s claim that the software is a standard product. What this usually means is that a set of software modules has been used in at least one or perhaps a few other LIMS installations. In this case, we must pose the question, "Is it really standard or in fact bespoke " The approach that should be taken to these "standard modules" is to determine if they are indeed standard (i.e., they are not revised to fit your LIMS application and have multiple applications for which references are available). If they are not standard, then confirm that the supplier has performed a Source Code Review or a suitable design review. If no review has been performed, the pharmaceutical manufacturer will need to make a value judgment on the risk this imposes (taking into account the results of the GLP assessment) and, if necessary, request that the supplier perform a Source Code Review as part of the project. 

Supervision, variation in, 1832 Supplier networks, lean, 555-556 Supplier performance management, 1799 Supplier relationship management, 337, 2134— 2138... 

How many suppliers does your comparer have For an example, an automobile compaity can have as maity as 50,000 suppliers. Think about the vastness of the task of managing all of these suppliers and getting the performance that your business requires. This is where a supply base reduction may be required to help get the supply base to a manageable level. There are maity benefits to an effective supplier management system. Some of these are better supplier performance on the critical characteristics for your operation, lower costs, lower inventories, less obsolete materials, quicker response to your customer needs, and good relationships with the suppliers. 

Supplier Performance shall be monitored through the following indicators ... 

The transplant auto companies like Honda and Toyota keep supplier performance records, but if a problem develops they are willing to come and help resolve the situation. They do not just come and attack and demand that the problem be resolved like the Big Three automakers do. 

Some customers create reports on supplier performance and send these to their suppliers. These can give a very good indication of the issues that may be present with that specific customer. 

The standard requires a commitment to continuous improvement as a basis for all activities. Evaluation of environmental effects shall not be limited only to those directly related to the company s own activities or products, but will apply to indirect effects such as transport (staff or clients travelling to and from the company site) to the work-place and sub-supplier performance. Furthermore, a register of sigrrificant environmental effects directly resulting from company activities has to be kept. 

Main policies can be decided at head ofiftce by senior management, while the monitoring and control of supplier performance and day-to-day liaison with logistics partners are best managed by lower level staff or at site. 

Manage business rules, assess suppliers performance, and maintain data... 

Capital equipment aftermarket parts distributor All markets and customers All products supported Sourcing group responsible for selection and business arrangement negotiation with suppliers for high-value commodity groups, supplier certification, and supplier performance measurement... 

The innovation in Figure 31.1 is treating suppliers the same way we treat purchased items. A suppliers may also account for about 65 percent or more of dollars, B items for 35 percent, and C items for 10 percent. The classification of the supplier is based on total business done with that supplier and is not limited to a single SKU. So, an A supplier may provide B and C SKUs. As with components and SKUs, there can be other criteria for ABC suppliers. Examples include supplier performance and the supplier s technical capabilities. 

Risk monitoring Real-time monitoring of suppliers performance is done so as to alert for any potential problems. An example of this is the Risk Monitoring System developed by Johnson and Johnson to monitor critical suppliers. Another example is the Global Operations Emergency Control Center at FedEx. We will discuss these in detail in Section 7.7. 

Early supplier involvement (ESI) as part of CE and CE has received much attention from researchers and practitioners at the end of the 90s and early 2000s. A literature review by Mclvor and Humphreys [16] revealed that despite the potential benefits of ESI negative impact of various factors might exist, like technology uncertainty, low levels of tmst between the buyer and supplier, poor communication and co-ordination mechanisms. These factors are similar to those mentioned often also in the context of CE and CE. Development and monitoring of collaborative relationships are critical for preventing problems with supplier performance [17]. 

Performance review by three common methods - the buyer may contact end users and ask for their evaluation, may rate the supplier on several criteria using a weighted score method, or may aggregate the cost of poor supplier performance to come up with adjusted costs of purchase... 

Kannan VR, Handfield RB (1998) Supply chain management supplier performance and firm performance. Int J Purchasing Mater Manag 34(3) 2-9... 

Choy et al. (2002) use case-based reasoning and neural networks to evaluate and benchmark potential suppliers. Performance of these evaluation methods depends upon data provided by potential suppliers and availability of historical data. The disadvantage of artificial intelligence-based methods is their lack of generality, and subsequently only basic features are usually used. 

The selection of a supplier is just the start of the supplier-buyer relationship. Supplier relationship management (SRM) also includes the segmentation of suppliers, performance assessment, improvement of the relationship and collaboration to create new value (Procurement Strategy Council 2007, pp. 6-7). 

The next step as seen in Fig. 5.6 is the supplier relationship assessment. Here the supplier relationship is assessed via the matrix according to the two axes. Supplier development should improve supplier performance. At the end of this process, the firm reduces the supplier base in order to improve the supplier s performance. The suppliers are then divided into four different groups which are improvement, collaboration, maintenance and prime. 

Materials management Value/amount of work in progress Customer queue time Supplier performance... 

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