Welcome to the Cove, gprasadhc!
When I buy parts (regardless of whether they are electronic, metal, or plastic), I do the following:
- divide suppliers (the preferred term instead of "vendors") into two groups ("custom made" and "off-the-shelf")
- I further divide the "off-the-shelf" into distributors and manufacturers
Now I devise 3 strategies, one for each type of supplier
- Strategy 1 for custom suppliers - send "self assessment" questionaire to gauge capability, capacity, and responsiveness to customer requests (we can talk about content of self assessment questionaires in a new thread)
- Strategy 2 for distributors of off-the-shelf goods - get price lists and delivery lead times (they don't do anything except pack and ship)
- Strategy 3 for manufacturers of off-the-shelf goods - send a different style "self assessment" questionaire to determine Quality System, type of documentation and traceability available, responsiveness to customer requests.
Armed with the preliminary results from the initial contact with suppliers, I arrange them in a grid which helps me quickly select for capabilty, capacity, and customer responsiveness.
If I intend to use a supplier for custom goods, I arrange to have a representative (employee, trusted friend, paid consultant) make a personal visit to "eyeball" the operation. I send someone I trust to make a valid decision whether the supplier is suitable for me. I personally never approve a custom supplier without a personal visit by someone I trust to give me an honest report. When convenient, I sometimes make the visit myself.
Depending on dollar amounts, I may give a trial order to distributor or manufacturer of off-the-shelf goods to see how the supplier performs - this may include buying one or two samples for testing and inspection puposes to see they conform to my requirements.
I keep records of the performance and reward good suppliers with more business.
In terms of Corrective Action Reports when we discover a nonconformance from a supplier, I am much more intense and personal with a custom supplier than an off-the-shelf goods supplier. My reasoning is I can have impact on someone making a product to my specifications. I can't have too much impact on someone making a product to his own specifications.
I always take the time and effort to send a formal letter to an approved supplier, acknowledging we have approved the supplier, but noting this point included in every letter:
Upon the recommendation of our President, _____________, we hereby grant your company and facility "Approved" supplier status for __________ (Chicago.)
Continued approved status is contingent on your company maintaining an acceptable quality and delivery performance and on responding promptly to all corrective action requests.
We intend to perform audits of all our approved suppliers on an annual basis. We do not perform "surprise audits." We will send you a "Quality System Self-Assessment" checklist prior to the anniversary of our last audit. After our review of the answers you supply, we determine whether to make an on-site audit visit. If so, we will schedule one at a mutually acceptable time.
Please advise us as soon as possible if there is any material change in either your Quality System or your operations so we may determine whether an interim audit may be necessary
