Approved Vendor (Supplier) List and Supplier Evaluation

K

ktout

#1
Hi All,
So we are just starting to put together our QMS for ISO:9001. We are a small manufacturing shop of about 20 or less employees. In our manual we state that we have (will have) an approved supplier list. As I read through older posts, it looks like only "key suppliers" or those who's products directly effect our manufacturing and end products would need to be on the ASL. Like many others, I am planning on grandfathering in all existing vendors as on the ASL prior to 2012.

For any future vendors: Criteria for new vendor consideration will be price, lead time/delivery, performance capabilities, quality system, references.

Currently, we don't rate or evaluate our suppliers, as we work with our current suppliers because they meet all of our needs. Also, we do not track our suppliers performance now, which we will need to do. Is there any EASY and inexpensive way or software to help track incoming shipments so that I can "rate" our suppliers at the end of the year? It seems to me that in order to evaluate and provide statistical data based on delivery and price, ect that I will need some sort of tracking software to make my life a little easier.

My customer is requiring for an upcoming audit:
1. criteria for ASL
2. supplier audit procedure & schedule
3. supplier corrective actions
4. tracking mechanism

Any and all comments/help will be MUCH appreciated! The ISO:9001 system is certainly intimidating if you've never worked in/for one before.
 

somashekar

Staff member
Super Moderator
#3
I am planning on grandfathering in all existing vendors as on the ASL prior to 2012.
Good, go ahead. Criteria is existing suppliers who are supplying you acceptable parts.
You have records to demonstrate that they are supplying parts with no problems to you to meet your customer requirements.
For any future vendors: Criteria for new vendor consideration will be price, lead time/delivery, performance capabilities, quality system, references.
Good, go ahead. You can apply one or a combination of criteria to evaluate and approve your new vendors.
"rate" our suppliers at the end of the year?
Quality, timely delivery and cost can be your three main rating criteria to keep vendors rated based on each supply made. Your ERP or a simple .xls program can make this for you.
The ISO:9001 system is certainly intimidating if you've never worked in/for one before.
Understanding the ISO9001 standard by a simple reading and getting to know what it expects can clear a lot of air. Please take time to read the standard.
 
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WKHANNA

Inactive Registered Visitor
#4
Our shop is less than 100 employees.
I put together a simple excel spreadsheet to track NCR’s (Non-Conformance Reports), Returns, and Response to CA’s.
The data is tracked monthly.
I’m not an ISO expert by any means, but AFIK, you can establish your own acceptable level of performance within practical reason for rating your suppliers.
I believe you are required to report their performance to them, also.
 

RoxaneB

Super Moderator
Super Moderator
#5
ktout said:
As I read through older posts, it looks like only "key suppliers" or those who's products directly effect our manufacturing and end products would need to be on the ASL.
That is good way to start the program. Then, if your organization pursues an environmental and/or safety management program, you can incorporate their needs into the existing supplier management process.

ktout said:
Like many others, I am planning on grandfathering in all existing vendors as on the ASL prior to 2012. For any future vendors: Criteria for new vendor consideration will be price, lead time/delivery, performance capabilities, quality system, references. Currently, we don't rate or evaluate our suppliers, as we work with our current suppliers because they meet all of our needs.
How do you know that they meet your needs? Can you prove this? What if they're late...or early on a key shipment? What if their paperwork is incorrect or missing? What if it's a minor issue...but happens all the time?

ktout said:
Also, we do not track our suppliers performance now, which we will need to do. Is there any EASY and inexpensive way or software to help track incoming shipments so that I can "rate" our suppliers at the end of the year? It seems to me that in order to evaluate and provide statistical data based on delivery and price, ect that I will need some sort of tracking software to make my life a little easier.
My own experience in this area was the implemenation of an Excel log (or Access database in one area) that was used to track any issues detected upon receipt (and issues detected by the user once the item was out in manufacturing).

We did quarterly analysis of the data as if there was a systematic issue, we wanted to know sooner than later.
 

Bunny

Quite Involved in Discussions
#6
Since you are a small organization, I would think you could handle it on Excel. I have only used Excel to track vendor performance and it has been over 10 years now.

I suggest setting up some sort of receiving inspection criteria so you can rate the vendor performance. Then record those ratings and trend on a regular basis. I trend monthly to stay on top of it and then I trend annually and use that result as the official rating for the year.
 
K

ktout

#7
Thanks for all of the ideas. I'm thinking that like you guys have suggested, using Excel would be the best and cheapest way for us to track vendors right now. I think that the ERP and MRP systems are going to be way more than we need right now. Does anyone know of a good template or can you suggest how I set up my spreadsheet? I'm not yet an Excel master to figure out all the macros and such that it has to offer.
 

Bunny

Quite Involved in Discussions
#8
I do not use macros. I have column headings for date, part number, part name, lot size, and vendor name. I also have two columns for accepted and rejected. The quantity of accepted pieces and rejected pieces are entered here and then at the end of each month I total up the numbers. The totals are then placed onto a chart and reported. My charts are rolling 12 months so I can demonstrate the trends.

I am also able to sort the data by part number or vendor to trend the performance of specific items.
 

QAnalyst1

Starting to get Involved
#9
A quick question: If you use ISO registration to qualify a supplier, shouldn't you maintain their current certification on file? I always have, but this came up in a meeting. Since we monitor their performance, the argument is that's sufficient and a current cert is not needed after initial qualification. I say if you use ISO as the qualifier, then you need to maintain a current certificate as ongoing proof of conformance. Any advice?
 

Ajit Basrur

Staff member
Admin
#10
A quick question: If you use ISO registration to qualify a supplier, shouldn't you maintain their current certification on file? I always have, but this came up in a meeting. Since we monitor their performance, the argument is that's sufficient and a current cert is not needed after initial qualification. I say if you use ISO as the qualifier, then you need to maintain a current certificate as ongoing proof of conformance. Any advice?
I agree with you ... it all depends on your procedure on managing the suppliers.

We (and most do too) keep supplier's ISO certification on file :)
 

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