Supplier Disapproval Decision Process

S

sharis

#1
I am working with our FAA MIDO to rehaul our supplier approval and monitoring process. I am wondering if anyone can give me examples of a good process for deciding when to disapprove a supplier. Currently it kind of goes round and round with repeat nonconformances and corrective actions and leaves disapproving a supplier up to management discretion (a discretion they are loathe to exercise because of the disruptions it will cause). When do you cut a supplier loose and how do you make that decision? Thank you in advance for your input.
 
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#2
So you have data ...
When you have an alternate second source, One of the most simple thing to do then is to sit with the supplier management, and ask them if they are keen to continue business with you.
If no then it is easy.
If yes...
Records do not show they are keen, what next.
Get a time period agreed within which they will improve and find out mutually what each have to do towards it.
If results are good you have a second source and that is good contingency plan.
If results are not good, taper off and evaluate / select another second source.
Tell them that as and when they want to associate they can approach and be considered in your evaluation / selection process.
 
B

BadgerMan

#3
That's a tough one. If you impose a hard requirement on yourself (say a numeric goal that must be met/maintained) you will have a real dilemma when a sole-source supplier doesn't make the grade. I think that's why it ultimately gets left up to "management discretion".

You could proceduralize it such that if suppliers don't maintain a defined level of performance, they are candidates for disqualification via management consensus.
 
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