Vendor (Supplier) Managed Inventory - Supplier Stocks Shelves - Receiving Inspection

[Fatboy]

Not sure if this in the place but here goes. I recently learned that we had some vendors who were stocking our shelves with parts that are not going through receiving inpection which is currently required. I was wondering if others have adopted this practice and if so how do you control this activity in regards to monitoring and defining quality requirements to the vendor? By the way there is no formal purchase order just a list maintained by the buyer which is communicated to the vendor.

Thanks in advance.

 

[Craig H.]

Hi.

If you have had no problems with them, then if I were you I'd document just how the transaction is handled. Are they on a list of approved suppliers? If they are you need to outline how they are monitored and approved. To me, it all depends on how comfortable you are with this process as it exists.

If it has been working, why change it? Just make sure it is documented and find something else to do. You don't say what you are doing (making?). If it is something like spaceships or pacemakers, then, of course, you would want to tighten it up a bit.

JMO

 

[Cari Spears]

If they are you need to outline how they are monitored and approved...
...You don't say what you are doing (making?). If it is something like spaceships or pacemakers, then, of course, you would want to tighten it up a bit.

Right. If I give a blanket order to So&So Industrial Supply for a certain quantity of standard catalog 1/2" endmills per month, those are going right into stock - no receiving inspection of the endmills, just verification of the shipment against the order. But, if I blanket order a certain quantity of 1/2" endmills altered to a gothic radius (to our print), then I would establish receiving inspection instructions (such as passing the endmill through a steel coupon and putting the coupon up on the comparator to check the form of the cutter path) and a sampling plan.

 

[Diana Cadwalader]

Vendor Managed Inventory

I agree with Craig, If you have a history with the vendor and have no issues with them. Document how they are qualified as an approved vendor and then document your procedure for managing the inventory.

However, I would think you would need a Blanket PO at the least to document that you have communicated that you communicated your requirements for the material to the vendor. I would also think that somewhere there is a contract for how the inventory is being managed.

In lean environments, Supplier Owned and Managed Inventory (SOMI) programs are the norm. These programs are also very supportive to ISO since they improve efficiencies (less buying/managing time) and decrease inventory carrying costs. The programs are typically very supportive of organizational goals. Most organizations that are utilizing these programs have brought Supply Chain (Purchasing) more solidly into the mfg programs by setting goals relative to the numbers of and success of these programs.

Sounds like your organization is trying to do the right thing - - - just get them documented and get them to take credit for the programs under a formalized system.