T
TheOtherMe
More food for thought, folks:
Subject: Q: Do you have to disqualify a bad supplier? /Naish
Date: Mon, 16 Aug 1999 12:59:50 -0600
From: ISO Standards Discussion <[email protected]>
From: [email protected]
Subject: Q: Do you have to disqualify a bad supplier? /Naish
This idea that you can always tell your supplier you will go elsewhere may work in most industries but not in all.
This brings up an interesting point. In two recent audits, one of a contract manufacturer and one of an electronics distributor, the auditor indicated the only time he would feel it was acceptable to not disqualify a supplier who did not meet either your delivery or quality needs was when they were the only source in the world for the product.
First, I see no requirement in the standard that says you MUST disqualify a supplier for either reason. If there is something I have missed, I would like to become better informed and welcome anyone who can indicate where it says you must disqualify a supplier and what the criteria is for when you must disqualify them.
Second, for many small companies it is not only not practical but not possible for them to disqualify a source even if they would like to. In the real world big companies like IBM, Motorola, Intel, AMP, 3M, and many others do not want to deal with the small quantity orders. So companies are forced to go to distributors to buy their materials. In some cases there may only be one or two and a small company, in order to compete on cost must make choices based on price for one and who will even sell to them for another. So disqualifying a source no matter how late or what the quality may not be an option.
Example: An electronic distributor (not the one audited above- lets call him SMALL GUY) had been buying direct from a major company. Let's call the supplier: ABC Co. earlier this year. SMALL GUY has been buying direct from ABC CO. for years. ABC Co. told this SMALL GUY that they had changed their distribution chain and were now only going to sell to distributor- MIDDLE GUY. So now SMALL GUY has to buy from MIDDLE GUY (who has been their competitor) or from some other distributor who is SMALL GUY ALSO. Since MIDDLE GUY knows SMALL GUY is the competitor, MIDDLE GUY fills orders for their own customers first and then SMALL GUY. SMALL GUY can go to ABC CO. but they don't really do anything but tell them to go back to MIDDLE GUY and work it out. SMALL GUY can go to SMALL GUY ALSO but he is in the same boat except he carries more stock to account for MIDDLE GUY's late delivery and mediocre quality (wrong parts, incorrect count, etc.) But if SMALL GUY goes to SMALL GUY ALSO he no longer can stay in business due to costs added by first MIDLE GUY and the SMALL GUY ALSO. So he is stuck with late deliveries, carrying some extra inventory and dealing with the quality issues.
Now some may say this is not real but it did in fact happen to a client of mine this year. More and more of the small companies, both assemblers and distributors, are getting caught in this mode due to increasing conglomorates who do not and will not deal with the small companies. There is also the problems with small company financials which the big guys and middle guys don't want to deal with forcing the smaller businesses to stay with suppliers which may not be the best in the world.
I am not saying that all small companies are stuck with bad suppliers because all small distributors are bad. To the contrary most smaller companies survive off of customer service. But there are some isolated instances and there are some get rich quick companies who service their bigger customers and the smaller ones have to wait. This can and does mean late and missed deliveries.
To stay in business the companies are forced to work the best they can with their suppliers. If they don't always get a response they still have to buy.
Phyllis
Subject: Q: Do you have to disqualify a bad supplier? /Naish
Date: Mon, 16 Aug 1999 12:59:50 -0600
From: ISO Standards Discussion <[email protected]>
From: [email protected]
Subject: Q: Do you have to disqualify a bad supplier? /Naish
This idea that you can always tell your supplier you will go elsewhere may work in most industries but not in all.
This brings up an interesting point. In two recent audits, one of a contract manufacturer and one of an electronics distributor, the auditor indicated the only time he would feel it was acceptable to not disqualify a supplier who did not meet either your delivery or quality needs was when they were the only source in the world for the product.
First, I see no requirement in the standard that says you MUST disqualify a supplier for either reason. If there is something I have missed, I would like to become better informed and welcome anyone who can indicate where it says you must disqualify a supplier and what the criteria is for when you must disqualify them.
Second, for many small companies it is not only not practical but not possible for them to disqualify a source even if they would like to. In the real world big companies like IBM, Motorola, Intel, AMP, 3M, and many others do not want to deal with the small quantity orders. So companies are forced to go to distributors to buy their materials. In some cases there may only be one or two and a small company, in order to compete on cost must make choices based on price for one and who will even sell to them for another. So disqualifying a source no matter how late or what the quality may not be an option.
Example: An electronic distributor (not the one audited above- lets call him SMALL GUY) had been buying direct from a major company. Let's call the supplier: ABC Co. earlier this year. SMALL GUY has been buying direct from ABC CO. for years. ABC Co. told this SMALL GUY that they had changed their distribution chain and were now only going to sell to distributor- MIDDLE GUY. So now SMALL GUY has to buy from MIDDLE GUY (who has been their competitor) or from some other distributor who is SMALL GUY ALSO. Since MIDDLE GUY knows SMALL GUY is the competitor, MIDDLE GUY fills orders for their own customers first and then SMALL GUY. SMALL GUY can go to ABC CO. but they don't really do anything but tell them to go back to MIDDLE GUY and work it out. SMALL GUY can go to SMALL GUY ALSO but he is in the same boat except he carries more stock to account for MIDDLE GUY's late delivery and mediocre quality (wrong parts, incorrect count, etc.) But if SMALL GUY goes to SMALL GUY ALSO he no longer can stay in business due to costs added by first MIDLE GUY and the SMALL GUY ALSO. So he is stuck with late deliveries, carrying some extra inventory and dealing with the quality issues.
Now some may say this is not real but it did in fact happen to a client of mine this year. More and more of the small companies, both assemblers and distributors, are getting caught in this mode due to increasing conglomorates who do not and will not deal with the small companies. There is also the problems with small company financials which the big guys and middle guys don't want to deal with forcing the smaller businesses to stay with suppliers which may not be the best in the world.
I am not saying that all small companies are stuck with bad suppliers because all small distributors are bad. To the contrary most smaller companies survive off of customer service. But there are some isolated instances and there are some get rich quick companies who service their bigger customers and the smaller ones have to wait. This can and does mean late and missed deliveries.
To stay in business the companies are forced to work the best they can with their suppliers. If they don't always get a response they still have to buy.
Phyllis