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Organizations often say,

“We are not going to spend money on supplier development" What type of customer and supplier relationship barrier does this statement represent?

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Question added by Deleted user
Date Posted: 2014/06/19
Ihab El Mortada
by Ihab El Mortada , Business Development Manager , Fookis Labs

Well, Supplier Development is the process of collaborating with suppliers to improve their processes and product manufacturing capabilities. Supplier knowledge and technology of the commodity they supply can be leveraged through supplier development with the OEM (Original Equipment Manufacturer) or service provider to reduce cost and lower project risk. An objective of Q-1 is to identify supplier expertise and initiatives that can benefit the OEM. A strong collaborative relationship between the OEM and their suppliers increases velocity to market and shortens the development cycle. It is in the best interest of all, to have a capable supplier network. Q-1 provides the strategic planning, structure and activities required for a strong, capable and responsive supply chain.

Each organization experiences unique struggles with suppliers, such as late deliveries, poor quality and inadequate responses to problems. We provide Supplier Development solutions to these concerns by utilizing strategic planning, project management, training and facilitation to leverage supplier expertise. Q-1 assesses suppliers to determine risk levels to create a mutually beneficial end result.

Q-1 SDEs (Supplier Development Engineers) are selected based on core competency certifications required for each customer. Our SDEs are professional engineers with strategic supplier engagement experience. Q-1 is trusted for planning and staffing to meet customer engineering needs.

Q-1 strategically segments Supplier Development into five functions:

  • Strategic Planning and Risk Definition
  • Engagement, Collaboration and Project Management
  • Quality Systems, Process and Controls
  • Training and Facilitation
  • Continuous Improvement and Surveillance

Q-1 communicates to purchasing and engineering, through the publication of intuitive Red, Yellow Green graphical interface diagrams. Our activities are focused on suppliers, parts and processes with the greatest risk to your end product’s safety, performance and reputation.

 

Thus, it is important for the company to take in consideration that spending money on supplier development will improve their performance in winning contracts with several sectors and organisations and provide support and training events to help unravel the tendering process.

Companies that neglect the important aspect of developing the supply chain often pay the price with cost, quality, lead time and customer retention. It is sometimes difficult to let the top managers understand the significance of supply chain management as it often comes down very low in their priorities. However, progressive companies do understand that managing the supply chains improve lead times, decrease costs of warehousing and inventory control, and increase the overall control against unknown variables. 

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