outsourcing innovation: selecting the best supplier
TRANSCRIPT
How to Select the Best
Supplier
OMTEC 2016
Discussion Points
What we are not going to discuss today
What is a “Best Supplier”
How do you find them
How do you keep them
Q&A
What we are not going to discuss today
Negotiation Techniques
How to write an RFQ
How to write a supply / service agreement
Why you should pay more for goods and services
What is a “Best Supplier”?
Financially sound
Ethical
cGMP Compliant
My definition of a “Best Supplier” Consistently delivers what I ordered, on-time, without
rejection at the lowest total cost while delivering YoY cost savings through innovation and process improvement and not allowing me to fail.
How do you find the Best Supplier? Clue – it is not with an RFQ and three quotes Does not often happen by chance So how do you find and enable “Best Suppliers”? First you must agree on why and what you are outsourcing
Why are you outsourcing? What are your core competencies and resource limitations? Do a gap analysis to further define what you are outsourcing Clean up your mess
Include in the terms of the RFQ
Know your suppliers well
Match your gaps with suppliers’ competencies
Engage Early
Why are we outsourcing
Manufacturing Capacity Constraints
Planned demand surge – product launch, sets
Company supply strategy
Competency constraints
What are your Core Competencies and Resource Limitations
Goes beyond the shop floor
What sets you apart (your core competencies)?
What has lead to superior design and lower total cost?
A team effort with an honest discussion and a white board
What are your limitations?
Where have you failed in the past?
Do A Gap Analysis To Further Define What You Are Outsourcing
Often more than just the “part”
What is required for superior performance and low cost?
Engage all stakeholders in the process
What can you provide?
Difference is the “gap” or competencies the supplier will need to fill
Clean up Your Mess to Reduce Opportunity for Failure
Requires total buy-in by all stakeholders
Correct incomplete or vague drawings, dimensions and specs
Just what is “Designer’s Intent”?
Be cautious with visual or subjective standards
How do you find the Best Supplier? Clue – it is not with an RFQ and three quotes
First you must agree on why and what you are outsourcing
Why are you outsourcing?
What are your core competencies and resource limitations?
Do a gap analysis to further define what you are outsourcing
Clean up your mess
Include in the terms of the RFQ
Know your suppliers well
Match your gaps with suppliers’ competencies
Engage Early
How do you maximize your relationship and keep the best suppliers?
Engage early and often
Listen
Drive out cost to improve profitability
Demand excellence
Measure performance
Focus on and manage the relationship
Managing the OEM/Supplier relationship
LAMP - Miller Heiman model Agree on shared interests and reason for investing in
relationship
Establish and document mutual goals and investment commitments
Track and report historical performance
Track and report project status
Plus / Delta all projects
Invest the time
Questions
