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Relationship between product quality and suppliers

2019/11/23

 
In today's market, competition among enterprises is gradually transformed into competition among enterprise supply chains. The supplier is the “key” of the entire supply chain. The supplier influences the success of downstream manufacturers in terms of delivery, quality control, lead time, inventory level, and product design.


The quality and price of the products supplied by the suppliers determine the quality and price of the final consumer products, affecting the market competitiveness, market share and market viability of the final products, as well as the core competitiveness of each component of the supply chain. Therefore, this article explores how to choose a supplier.

A.    Influencing factors of supplier selection Suppliers are part of the open system of supply chain, so the choice of suppliers is also affected by various economic, political and other factors.
 

1. The quality factor is the survival of the supply chain. The use value of the product is based on the product quality. It determines the quality of the final consumer product and affects the market competitiveness and market share of the product. Therefore, quality is an important factor in selecting suppliers.

2. The low price factor means that the company can reduce the cost of its production and operation, and it has obvious effects on the company to improve its competitiveness and increase profits. It is an important factor in selecting suppliers. But the lowest-priced supplier is not necessarily the most appropriate, but also considers factors such as product quality, delivery time, and shipping costs.

3. The punctuality of delivery can deliver products on time and at the agreed time and place to directly affect the continuity of the company's production and supply activities. It will also affect the inventory level of the supply chain at all levels, which in turn will affect the company's response to the market, interrupt the producer's production plan and the seller's sales plan.

4. In order to survive and develop in the fierce competition, the products produced by the company must be diversified to meet the needs of consumers and achieve the purpose of occupying the market and obtaining profits. The diversification of products is based on the flexibility of the supplier's variety, which determines the type of consumer goods.

5. Other influencing factors include design capabilities, special process capabilities, overall service levels, and project management capabilities.
 
 
 

B. The basic criterion for selecting a supplier from a supplier is the “Q.C.D.S” principle, which is the principle of quality, cost, delivery and service. Among the four, the quality factor is the most important. First, confirm whether the supplier has established a stable and effective quality assurance system, and then confirm whether the supplier has the equipment and process capability to produce the specific products required. The second is cost and price. The value engineering method should be used to analyze the cost of the products involved, and the cost savings can be realized through win-win price negotiation. In terms of delivery, it is necessary to determine whether the supplier has sufficient production capacity, whether the human resources are sufficient, and whether there is potential for expanding production capacity. Last but not least, the supplier's pre-sales and after-sales service records.
 
 

C. The supplier selection step supplier plays an important role in the supply chain, and the supplier selection mechanism is diversified. Therefore, the decision makers of the enterprise should select the supplier according to local conditions and conduct detailed analysis on the internal and external environment of the enterprise. The long-term development strategy and core competitiveness of the enterprise, choose the theory and method suitable for the enterprise or the industry, and formulate corresponding implementation steps and implementation rules. Different companies will have different steps when selecting suppliers, but the basic steps should include the following aspects.
 

1. Establishing a supplier selection panel: The company needs to set up a special team to control and implement the supplier evaluation. The team members are mainly from the procurement, quality, production, engineering and other departments closely related to the supply chain. Team members must have a team spirit and have certain professional skills. The selection team must be supported by both the procurement and the top leadership of the supplier company.

2. Analyze the competitive environment of the market: Companies must know what the current product needs are, what types and characteristics of the products are, in order to confirm the customer's needs and confirm whether there is a need to establish a supply relationship. If a supply relationship has been established, it is necessary to confirm the necessity of changes in the supply partnership based on changes in demand, analyze the current status of existing suppliers, and summarize the problems existing in the enterprise.

3. Establish the goal of supplier selection: Companies must determine how the supplier evaluation process is implemented and must establish substantial goals. Supplier evaluation and selection is not only a simple process, but also a process of business process reengineering. If implemented well, it can bring a series of benefits.

4. Establishing supplier evaluation criteria: The supplier evaluation index system is the basis and standard for the enterprise to comprehensively evaluate suppliers. It is an indicator that reflects the different attributes of the complex system composed by the enterprise itself and the environment. It is ordered according to its affiliation and hierarchy. The composition of the collection. The evaluation of suppliers in different industries, enterprises, different product requirements and environments should be the same, but the evaluation criteria of suppliers should cover the following aspects: supplier performance, equipment management, human resource development, quality control, cost. Control, technology development, customer satisfaction, delivery agreements, etc.

According to the actual situation of the enterprise and the time span selected by the supplier, the requirements for the supplier are also different. There are corresponding short-term standards and long-term standards according to the length of time: the short-term standard products selected by the supplier are of appropriate quality, low cost and prompt delivery. The overall service level is good (installation service, training service, maintenance service, upgrade service, technical support service), commitment and ability to perform the contract.
 
Whether the supplier's long-term standard supplier quality management system is sound, whether the supplier's internal machinery and equipment are advanced and maintenance, whether the supplier's financial status is stable, whether the supplier's internal organization and management are good, and whether the supplier's employees are stable. Wait. When determining the criteria for selecting suppliers, it is necessary to consider short-term standards and long-term standards, and combine the two to make the selected standards more comprehensive, and then use the standards to evaluate suppliers and finally find the ideal suppliers.

5. Supplier Participation Once the company decides to implement a supplier selection, the selection team needs to involve the supplier as much as possible in the design process of the selection process to confirm whether they have a desire to achieve a higher level of performance.

6. The main job of selecting suppliers is to investigate and collect all-round information about the supplier's production operations. Based on the collection of supplier information, it is possible to use a certain tool and technical method to conduct supplier selection.

7. Implementing supply partnerships In the process of implementing supply partnerships, market demand will also change. The enterprise can modify the supplier selection criteria in time according to the actual situation, or restart the supplier evaluation selection. When re-selecting suppliers, new and old suppliers should be given enough time to adapt to change.
 
 

D. Supplier selection methods Currently, the technical methods and tools that can be applied to supplier selection are mainly divided into three categories: qualitative methods, quantitative methods, and methods combining qualitative and quantitative methods, including public bidding method, negotiation selection method, and ABC cost. Method, linear programming method, analytic hierarchy process (AHP), fuzzy comprehensive evaluation method, neural network method, TOPSIS method, data envelopment analysis (DEA), component analysis method, gray comprehensive evaluation method, and integrated application method of these methods, etc. Manufacturing companies can choose which method to apply according to their actual situation. The commonly used methods are as follows:

1. Intuitive judgment method: refers to a method of selecting suppliers through investigation, consultation, comprehensive analysis and judgment. It is a subjective and strong judgment method, mainly listening to and adopting the opinions of experienced purchasing personnel, or The judgment is directly judged by the purchasing personnel. The quality of this method depends on the correctness and completeness of the supplier's information and the ability and experience of the decision makers. This method is simple and fast, but it lacks scientificity and is limited by the level of detail of the information. It is often used to select suppliers of non-primary raw materials.

2. Appraisal selection method: On the basis of full investigation and understanding of suppliers, we will carry out careful assessment, analysis and comparison and choose suppliers. Supplier surveys can be divided into preliminary supplier surveys and in-depth supplier surveys. The respondents at each stage have a question of supplier selection, and the purpose and basis of the selection are different. The choice of the initial supplier survey object is very simple, the basic basis is the product specifications, quality and price levels, production capacity, transportation conditions. The few selected among the suppliers with the right conditions are the targets of the preliminary supplier survey. The choice of in-depth supplier survey targets is based on suppliers who influence key products and important products of the company. These suppliers should conduct in-depth research and evaluation, and the selection criteria are mainly the strength of the enterprise, the production capacity of the product, the technical level, the quality assurance system and the management level. After the evaluation and evaluation of each evaluation index, a comprehensive evaluation is also required.

3. Bidding selection method: When the quantity of purchased materials is large and the supply market is highly competitive, the bidding method can be used to select suppliers. As the bidder, the purchaser submits the conditions and requirements for procurement in advance, invites many suppliers to participate in the bidding, and then the purchaser selects the transaction object from the above in accordance with the prescribed procedures and standards, and proposes the bidders with the most favorable conditions. Agreement and other processes. Note that the entire process requires openness, fairness, and merit.

4. Negotiation and selection: When there are more suppliers to choose from and the purchasing unit is difficult to choose, the negotiation selection method can also be adopted. That is, the procurement unit selects several suppliers with favorable supply conditions, and negotiates with them separately to determine the appropriate Supplier. Compared with the bidding selection method, the negotiation selection method is more reliable in terms of product quality, delivery date and after-sales service because the two parties can fully negotiate, but because of the limited choice, it is not necessarily the cheapest and the most favorable supply conditions. Supplier. When the procurement time is more urgent, the bidding unit is less, the supplier competition is not fierce, and the ordering material specifications and technical conditions are more complicated, the negotiation selection method is more suitable than the bidding selection method.
 
 
 

E. Issues to be aware of when selecting a supplier
 

1. The general situation of self-made and “outsourcing” procurement, the higher the ratio of outsourcing, the greater the opportunity to choose suppliers, and the main target is the professional manufacturers who can work together. Through outsourcing, companies can focus on core competencies and avoid distractions.

2. Single supplier and multiple suppliers: A single supplier refers to a certain kind of goods ordered from one supplier. The advantage of this purchase method is that the supply and demand sides are closely related, the quality of purchased goods is stable, and the procurement cost is low; It is not easy to compare with other suppliers, it is easy to lose the supplier with better quality and price, the mobility of procurement is small, and if the supplier has problems, it will affect the production and operation activities of the enterprise. Multiple suppliers are the items that are required for multiple ordering, and their advantages and disadvantages are exactly the opposite of a single supplier.

3. Domestic procurement and international procurement, domestic suppliers, the price may be relatively low, due to the geographical proximity, can achieve on-time production or zero inventory strategy; select international suppliers may purchase items that domestic enterprises can not achieve, improve their technical content , expand the source of supply.

4. If direct purchase and indirect purchase are large purchases or the required items have a significant impact on the production and operation of the enterprise, direct purchase should be adopted to avoid the increase of the price by the middlemen to reduce the cost; if the purchase quantity is small or the purchased items have little effect on the production and operation activities , through indirect procurement, saving the company's purchasing energy and expenses.

5. Avoiding the lack of scientific choices At present, many companies in China have inadequate management systems and lack of scientific methods of selecting suppliers. As a result, when selecting suppliers in most projects, it is more to refer to the various written texts provided by the suppliers themselves. Materials and self-introduction, as well as word-of-mouth in the market, or based on personal subjective delusions, choose suppliers to participate in the bidding, so when choosing suppliers, the human factors are relatively large. In addition, in terms of selecting suppliers' standards, the current selection criteria of enterprises are mostly concentrated on suppliers' product quality, price, flexibility, delivery punctuality, lead time and batch, etc., and have not formed a comprehensive supplier comprehensive evaluation index. The system cannot make a comprehensive, specific and objective evaluation of the supplier. Such problems should be avoided as much as possible.

 

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