Week One Discussion 1
3 months ago 10
WeekOneDiscussion1InsturctionsHM.docx
Week1e-Assessments-SCM610.pptx
Week1d-SupplierRelationships-SCM610.pptx
WeekOneDiscussion1InsturctionsHM.docx
Week One Discussion 1
The purpose of a Discussion is to foster a conversation among students for everyone to gain a deeper appreciation for the course content.
Each week contains multiple Discussions that you are required to address. Post your weekly contributions commenting on the key issues and also comment on contributions of two of your colleagues.
Contributions must display original thinking and good knowledge of the subject matter, including links and references to sources used to back up your arguments.
1. Your contribution must be a Substantial Contributions. A Substantial Contribution is a posting that adds value to the conversation by providing relevant different views or a personal relevant experience. A point of view from an authority on the subject is also a substantial contribution.
2. Postings such as: I agree with Joe, ……… and repeating what Joe has already said…are not substantial contributions and do not add value to the discussion. This person in simply using someone else's contribution, not her/his own. If you agree with someone, explain why and provide new information.
3. Provide links and references of resources used. Expert sources add credibility to your statements and provide new views on the subject.
4. This is a business course. Use professional business language. Provide facts and quantitative information such as figures (numbers), statistics, charts, graphs, to justify your arguments.
Consider "Subscribing" to your Thread in order to receive email notices anytime someone writes back to you!
Why is it important that supply chain management processes be both cross-functional and cross-firm? In your answer address the problems associated with functional silos and corporate silos.
Week1e-Assessments-SCM610.pptx
SCM 610
Supply Chain Collaboration
Week 1 – Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
Department of Management and Marketing
SCM 610 – Supply Chain Collaboration
1
‹#›
Overview
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
Chapter 10 Conducting Assessments of the Supply Chain Management Processes
Supply Chain Management: Processes, Partnerships, Performance
4th Edition
3
‹#›
The Supply Chain Management Processes
Supply Chain Management Processes
Logistics
Marketing
Finance
Tier 2
Supplier
End Customer
Manufacturer
Information Flow
Purchasing
Production
Tier 1
Supplier
Customer
R&D
PRODUCT FLOW
CUSTOMER RELATIONSHIP MANAGEMENT
PRODUCT DEVELOPMENT AND COMMERCIALIZATION
RETURNS MANAGEMENT
ORDER FULFILLMENT
DEMAND MANAGEMENT
CUSTOMER SERVICE MANAGEMENT
SUPPLIER RELATIONSHIP MANAGEMENT
MANUFACTURING FLOW MANAGEMENT
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 3.
The Need for a Process Assessment
The assessment helps bring the right parties to the table and provides a forum for a cross-functional discussion.
The assessment enables management to benchmark the practices of the firm with those prescribed in the framework.
The assessment helps managers prioritize improvement opportunities identified.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
How The Tool Works
Each process has its own assessment tool.
Each process is broken-down into its sub-processes and each sub-process is assessed on several items.
Each item is given a:
Score: from 1 to 5, depending on with which statement the participant agrees most.
Importance: from 1 to 3, depending on how important the participant feels that item is for the success of the process.
Justification: a written explanation of why the participant scored the item the way they did.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
The Assessment Tools
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 388.
7
‹#›
Preparing for an Assessment
Gain top management sponsorship and commitment from managers in all functions.
Plan for the assessment at least 1 month in advance.
Get good cross-functional representation – this is key for unleashing the power of the consensus building meeting.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
8
‹#›
Assessing a Process
Select which process(es) to assess and gain management commitment.
Choose the team members and schedule the process.
Acquaint the team members with the framework, and the details of the supply chain management processes that will be assessed.
Have the team members individually respond by filling out the assessment tools.
Process the responses to be used as the basis for discussion during the consensus-building session.
Manage the consensus-building session.
Develop a summary of scores, importance and justification to be used to prioritize opportunities and develop action items for implementation of improvements.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
9
‹#›
Planning: A Sample Schedule
Acquaint
Describe process or participants read article/book chapter of the process to assess.
Complete Assessment Tool
Participants complete assessment tool individually
Deadline
Deadline for returning completed assessment
Summarize
results of assessment for consensus building meeting
Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday
Consensus Building Meeting
Evaluate responses, produce agreed score and identify areas of opportunities and priorities
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 185.
10
‹#›
Consensus Building Meeting
Average duration: 3-4 hours
There is group learning
There are some similar questions
Meeting dynamics
Reluctant beginning
Intense discussion
Accelerated finish: strategic sub-processes tend to require more time
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
11
‹#›
Sample Summary of Responses
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
12
‹#›
Establishing Priorities with the Results
| 5 | 5/1 | 5/2 | 5/3 |
| 4 | 4/1 | 4/2 | 4/3 |
| 3 | 3/1 | 3/2 | 3/3 |
| 2 | 2/1 | 2/2 | 2/3 |
| 1 | 1/1 | 1/2 | 1/3 |
| Score | 1 | 2 | 3 |
Importance
Score
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 191.
Evaluate resource commitment
No action required
Actionable Items
Highest Priority
13
‹#›
Next up!
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
image1.PNG
image3.emf
image5.jpeg
image6.png
image7.wmf
image2.png
Week1d-SupplierRelationships-SCM610.pptx
SCM 610
Supply Chain Collaboration
Week 1 – Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
Department of Management and Marketing
SCM 610 – Supply Chain Collaboration
1
‹#›
Overview
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
Chapter 3 Supplier Relationship Management
Supply Chain Management: Processes, Partnerships, Performance
4th Edition
3
‹#›
Supply Chain Management Integrating and Managing Business Processes Across the Supply Chain
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p.55.
Supplier Relationship Management Teams
From
To
MIS
R&D
MKTG
LOG
ACCT
Purchasing
MIS
R&D
MKTG
LOG
ACCT
Sales
MIS
R&D
MKTG
LOG
ACCT
Buyer
Seller
MIS
R&D
MKTG
LOG
ACCT
5
‹#›
The Strategic Supplier Relationship Management Process
Customer Relationship Management
Strategic Sub-Processes
Process Interfaces
Activities
Customer Service Management
Demand Management
Order Fulfillment
Manufacturing Flow Management
Product Development
& Commercialization
Returns Management
Review Corporate, Marketing, Manufacturing and Sourcing Strategies
Identify Criteria for Segmenting Suppliers
Provide Guidelines for the Degree of Customization in the Product and Service Agreement
Develop Framework of Metrics
Develop Guidelines for Sharing Process Improvement Benefits with Suppliers
Outline metrics of interest
Relate metrics to the supplier’s impact on profitability and the profitability for the supplier
Identify product & service components that are key to the organization’s success now and in the future
Profitability / Growth / Stability
Technology
Capacity
Innovation
Quality
Volume purchased
Criticality / service level required
Sophistication / Compatibility
Consider quality/cost implications of various differentiation alternatives
Select boundaries for degree of differentiation
Outline options for sharing the benefits of process improvements
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 57.
6
‹#›
Bottlenecks
Cooking Oil
Strategic
Chicken
Beef
Promotional Sauces
Non-Critical
Straws
Leverage
Cups
Napkins
Low Volume of Spend High
Low Complexity for Wendy’s High
Comparing Suppliers on Complexity and Volume: An Example from Wendy’s
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 60.
7
‹#›
The Operational Supplier Relationship Management Process
Customer Relationship Management
Operational Sub-Processes
Process Interfaces
Activities
Customer Service Management
Demand Management
Order Fulfillment
Product Development
& Commercialization
Returns Management
Differentiate Suppliers
Prepare the Supplier/Segment Management Team
Internally Review the Supplier/
Supplier Segment
Identify Opportunities
with the Suppliers
Develop the Product and Service Agreement and
Communication Plan
Measure Performance and
Generate Supplier
Cost/Profitability Reports
Implement the Product and Service Agreement
Manufacturing Flow Management
Perform supplier profitability analysis or total cost analysis
Assess potential growth, strategic value and drivers
Identify Account/Commodity Manager
Select team members
Product purchased
Sales growth
Criticality of supplier
Sales opportunities
Cost reduction opportunities
Service improvement opportunities
Develop and follow implementation plan
Meet regularly with key customers
Measure by supplier and for the supplier
Revenue Costs
Profitability Other: service, quality
Report performance
Outline and draft the PSA
Gain commitment of the company’s functions
Gain supplier acceptance of PSA
Agree on a communications and continuous improvement plan
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 67.
8
‹#›
Vendor Assurance: The Eight Steps
| Step 1 | Specifications. The concept of Vendor Assurance is explained to the vendor and the mutual commitment to Vendor Assurance established. The specifications of the goods or service to be purchased are explained and their content discussed. |
| Step 2 | Process Description. Good manufacturing practices and environmental responsibility are demonstrated by the vendor. A detailed description of the vendor’s normal process is provided in confidence and forms the basis of the Vendor File. |
| Step 3 | Risk Assessment. Jointly, hazards are identified, risks are quantified, and Critical Control Points associated with the vendor’s process are located. |
| Step 4 | Quality Management. Existing quality systems to minimize risks are assessed and documented. Where necessary, additional methods to monitor and control key areas are implemented. A commitment and positive attitude to quality improvement are demonstrated by the vendor. |
| Step 5 | Conformance. The vendor provides data that demonstrates his process is capable of consistently meeting his customers’ requirements. |
| Step 6 | Review. The periods’ activities are reviewed, confirming that the customers’ requirements are met, assuring incoming materials can be accepted based on vendor data, and identifying areas for improvement. |
| Step 7 | Mutual Development. Exchanged visits between Mars, Incorporated and the vendor by relevant personnel from all parts of both companies occur, as appropriate, to better understand one another’s processes, needs, limitations, specifications and quality performance. |
| Step 8 | Continue Commitment to Quality. Enduring business relationships are established which motivate vendors to continuously improve quality, costs, and responsiveness to our mutual benefits. This will be assured by regular audits as part of normal communications between partners. |
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 70.
9
‹#›
Next up!
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
image1.PNG
image3.emf
image5.jpeg
image6.jpeg
image2.png
WeekOneDiscussion1InsturctionsHM.docx
Week One Discussion 1
The purpose of a Discussion is to foster a conversation among students for everyone to gain a deeper appreciation for the course content.
Each week contains multiple Discussions that you are required to address. Post your weekly contributions commenting on the key issues and also comment on contributions of two of your colleagues.
Contributions must display original thinking and good knowledge of the subject matter, including links and references to sources used to back up your arguments.
1. Your contribution must be a Substantial Contributions. A Substantial Contribution is a posting that adds value to the conversation by providing relevant different views or a personal relevant experience. A point of view from an authority on the subject is also a substantial contribution.
2. Postings such as: I agree with Joe, ……… and repeating what Joe has already said…are not substantial contributions and do not add value to the discussion. This person in simply using someone else's contribution, not her/his own. If you agree with someone, explain why and provide new information.
3. Provide links and references of resources used. Expert sources add credibility to your statements and provide new views on the subject.
4. This is a business course. Use professional business language. Provide facts and quantitative information such as figures (numbers), statistics, charts, graphs, to justify your arguments.
Consider "Subscribing" to your Thread in order to receive email notices anytime someone writes back to you!
Why is it important that supply chain management processes be both cross-functional and cross-firm? In your answer address the problems associated with functional silos and corporate silos.
Week1e-Assessments-SCM610.pptx
SCM 610
Supply Chain Collaboration
Week 1 – Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
Department of Management and Marketing
SCM 610 – Supply Chain Collaboration
1
‹#›
Overview
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
Chapter 10 Conducting Assessments of the Supply Chain Management Processes
Supply Chain Management: Processes, Partnerships, Performance
4th Edition
3
‹#›
The Supply Chain Management Processes
Supply Chain Management Processes
Logistics
Marketing
Finance
Tier 2
Supplier
End Customer
Manufacturer
Information Flow
Purchasing
Production
Tier 1
Supplier
Customer
R&D
PRODUCT FLOW
CUSTOMER RELATIONSHIP MANAGEMENT
PRODUCT DEVELOPMENT AND COMMERCIALIZATION
RETURNS MANAGEMENT
ORDER FULFILLMENT
DEMAND MANAGEMENT
CUSTOMER SERVICE MANAGEMENT
SUPPLIER RELATIONSHIP MANAGEMENT
MANUFACTURING FLOW MANAGEMENT
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 3.
The Need for a Process Assessment
The assessment helps bring the right parties to the table and provides a forum for a cross-functional discussion.
The assessment enables management to benchmark the practices of the firm with those prescribed in the framework.
The assessment helps managers prioritize improvement opportunities identified.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
How The Tool Works
Each process has its own assessment tool.
Each process is broken-down into its sub-processes and each sub-process is assessed on several items.
Each item is given a:
Score: from 1 to 5, depending on with which statement the participant agrees most.
Importance: from 1 to 3, depending on how important the participant feels that item is for the success of the process.
Justification: a written explanation of why the participant scored the item the way they did.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
The Assessment Tools
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 388.
7
‹#›
Preparing for an Assessment
Gain top management sponsorship and commitment from managers in all functions.
Plan for the assessment at least 1 month in advance.
Get good cross-functional representation – this is key for unleashing the power of the consensus building meeting.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
8
‹#›
Assessing a Process
Select which process(es) to assess and gain management commitment.
Choose the team members and schedule the process.
Acquaint the team members with the framework, and the details of the supply chain management processes that will be assessed.
Have the team members individually respond by filling out the assessment tools.
Process the responses to be used as the basis for discussion during the consensus-building session.
Manage the consensus-building session.
Develop a summary of scores, importance and justification to be used to prioritize opportunities and develop action items for implementation of improvements.
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
9
‹#›
Planning: A Sample Schedule
Acquaint
Describe process or participants read article/book chapter of the process to assess.
Complete Assessment Tool
Participants complete assessment tool individually
Deadline
Deadline for returning completed assessment
Summarize
results of assessment for consensus building meeting
Tuesday Wednesday Thursday Friday Saturday Sunday Monday Tuesday Wednesday Thursday
Consensus Building Meeting
Evaluate responses, produce agreed score and identify areas of opportunities and priorities
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 185.
10
‹#›
Consensus Building Meeting
Average duration: 3-4 hours
There is group learning
There are some similar questions
Meeting dynamics
Reluctant beginning
Intense discussion
Accelerated finish: strategic sub-processes tend to require more time
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
11
‹#›
Sample Summary of Responses
© Supply Chain Management Institute. Source: Supply Chain Management: Processes, Partnerships, Performance.
12
‹#›
Establishing Priorities with the Results
| 5 | 5/1 | 5/2 | 5/3 |
| 4 | 4/1 | 4/2 | 4/3 |
| 3 | 3/1 | 3/2 | 3/3 |
| 2 | 2/1 | 2/2 | 2/3 |
| 1 | 1/1 | 1/2 | 1/3 |
| Score | 1 | 2 | 3 |
Importance
Score
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach, FL: Supply Chain Management Institute, 2014, p. 191.
Evaluate resource commitment
No action required
Actionable Items
Highest Priority
13
‹#›
Next up!
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
image1.PNG
image3.emf
image5.jpeg
image6.png
image7.wmf
image2.png
Week1d-SupplierRelationships-SCM610.pptx
SCM 610
Supply Chain Collaboration
Week 1 – Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
Department of Management and Marketing
SCM 610 – Supply Chain Collaboration
1
‹#›
Overview
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration
Chapter 3 Supplier Relationship Management
Supply Chain Management: Processes, Partnerships, Performance
4th Edition
3
‹#›
Supply Chain Management Integrating and Managing Business Processes Across the Supply Chain
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p.55.
Supplier Relationship Management Teams
From
To
MIS
R&D
MKTG
LOG
ACCT
Purchasing
MIS
R&D
MKTG
LOG
ACCT
Sales
MIS
R&D
MKTG
LOG
ACCT
Buyer
Seller
MIS
R&D
MKTG
LOG
ACCT
5
‹#›
The Strategic Supplier Relationship Management Process
Customer Relationship Management
Strategic Sub-Processes
Process Interfaces
Activities
Customer Service Management
Demand Management
Order Fulfillment
Manufacturing Flow Management
Product Development
& Commercialization
Returns Management
Review Corporate, Marketing, Manufacturing and Sourcing Strategies
Identify Criteria for Segmenting Suppliers
Provide Guidelines for the Degree of Customization in the Product and Service Agreement
Develop Framework of Metrics
Develop Guidelines for Sharing Process Improvement Benefits with Suppliers
Outline metrics of interest
Relate metrics to the supplier’s impact on profitability and the profitability for the supplier
Identify product & service components that are key to the organization’s success now and in the future
Profitability / Growth / Stability
Technology
Capacity
Innovation
Quality
Volume purchased
Criticality / service level required
Sophistication / Compatibility
Consider quality/cost implications of various differentiation alternatives
Select boundaries for degree of differentiation
Outline options for sharing the benefits of process improvements
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 57.
6
‹#›
Bottlenecks
Cooking Oil
Strategic
Chicken
Beef
Promotional Sauces
Non-Critical
Straws
Leverage
Cups
Napkins
Low Volume of Spend High
Low Complexity for Wendy’s High
Comparing Suppliers on Complexity and Volume: An Example from Wendy’s
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 60.
7
‹#›
The Operational Supplier Relationship Management Process
Customer Relationship Management
Operational Sub-Processes
Process Interfaces
Activities
Customer Service Management
Demand Management
Order Fulfillment
Product Development
& Commercialization
Returns Management
Differentiate Suppliers
Prepare the Supplier/Segment Management Team
Internally Review the Supplier/
Supplier Segment
Identify Opportunities
with the Suppliers
Develop the Product and Service Agreement and
Communication Plan
Measure Performance and
Generate Supplier
Cost/Profitability Reports
Implement the Product and Service Agreement
Manufacturing Flow Management
Perform supplier profitability analysis or total cost analysis
Assess potential growth, strategic value and drivers
Identify Account/Commodity Manager
Select team members
Product purchased
Sales growth
Criticality of supplier
Sales opportunities
Cost reduction opportunities
Service improvement opportunities
Develop and follow implementation plan
Meet regularly with key customers
Measure by supplier and for the supplier
Revenue Costs
Profitability Other: service, quality
Report performance
Outline and draft the PSA
Gain commitment of the company’s functions
Gain supplier acceptance of PSA
Agree on a communications and continuous improvement plan
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 67.
8
‹#›
Vendor Assurance: The Eight Steps
| Step 1 | Specifications. The concept of Vendor Assurance is explained to the vendor and the mutual commitment to Vendor Assurance established. The specifications of the goods or service to be purchased are explained and their content discussed. |
| Step 2 | Process Description. Good manufacturing practices and environmental responsibility are demonstrated by the vendor. A detailed description of the vendor’s normal process is provided in confidence and forms the basis of the Vendor File. |
| Step 3 | Risk Assessment. Jointly, hazards are identified, risks are quantified, and Critical Control Points associated with the vendor’s process are located. |
| Step 4 | Quality Management. Existing quality systems to minimize risks are assessed and documented. Where necessary, additional methods to monitor and control key areas are implemented. A commitment and positive attitude to quality improvement are demonstrated by the vendor. |
| Step 5 | Conformance. The vendor provides data that demonstrates his process is capable of consistently meeting his customers’ requirements. |
| Step 6 | Review. The periods’ activities are reviewed, confirming that the customers’ requirements are met, assuring incoming materials can be accepted based on vendor data, and identifying areas for improvement. |
| Step 7 | Mutual Development. Exchanged visits between Mars, Incorporated and the vendor by relevant personnel from all parts of both companies occur, as appropriate, to better understand one another’s processes, needs, limitations, specifications and quality performance. |
| Step 8 | Continue Commitment to Quality. Enduring business relationships are established which motivate vendors to continuously improve quality, costs, and responsiveness to our mutual benefits. This will be assured by regular audits as part of normal communications between partners. |
Source: Douglas M. Lambert, Editor, Supply Chain Management: Processes, Partnerships, Performance, Fourth Edition, Ponte Vedra Beach , FL: Supply Chain Management Institute, 2014, p. 70.
9
‹#›
Next up!
Supply Chain Management
Customer Relationship Management
Supplier Relationship Management
Assessments
Supply Chain Mapping
SCM 610 – Supply Chain Collaboration