Supplier Evaluation SOP - How do I Define Major and Minor Suppliers?

[Asant]

Hello:

I am in the process of creating a Spplier Evaluation SOP. I need to know how can I define critical major and minor supplier. Also I need to know which suppliers can be audit by mail and if it is necessary to perfome an site prior to a mail audit

 

[Jim Wynne]

Re: Supplier Evaluation SOP--How do I Define Major and Minor Suppliers?

Hello:

I am in the process of creating a Spplier Evaluation SOP. I need to know how can I define critical major and minor supplier. Also I need to know which suppliers can be audit by mail and if it is necessary to perfome an site prior to a mail audit

I moved your post to its own thread in the appropriate forum.

Generally, definition of critical suppliers is based on risk, and that information should come from your historical data on supplier performance.

I don't know what standards (ISO 9001, e.g.) you might be in need of satisfying, but generally there is no requirement for auditing of suppliers, so however you want to go about it should be (again) based on the risks involved. In my own experience, I have never seen a supplier audit process that was helpful in predicting supplier performance, but it could help as a strictly eliminative process.

 

[Richard Regalado]

Re: Supplier Evaluation SOP--How do I Define Major and Minor Suppliers?

Hello:

I am in the process of creating a Spplier Evaluation SOP. I need to know how can I define critical major and minor supplier. Also I need to know which suppliers can be audit by mail and if it is necessary to perfome an site prior to a mail audit

Hi Asant. How are you man?!

What is your specific reason in categorizing suppliers?

A method I've seen is that suppliers supplying materials (and services) relating to the key product/s of the organization are classified as major. All other suppliers of materials will be classified as minor. In a steel fab company, steel suppliers and NDT services would be classified as major whilst suppliers of office stationery as minor.

I don't understand your other questions.

 

[qusys]

Re: Supplier Evaluation SOP--How do I Define Major and Minor Suppliers?

Hello:

I am in the process of creating a Spplier Evaluation SOP. I need to know how can I define critical major and minor supplier. Also I need to know which suppliers can be audit by mail and if it is necessary to perfome an site prior to a mail audit

You could prepare an audit programme to audit supplier that provide you the most critical raw material for your product, for example.
As Jim said, it is a question of risk and historical data.
if you have some supplier that caused you a problem , you may want to asses it according to specifi audit criteria ( requirement, contract...).
Usually You can evaluate Supplier Corrective Action Data for this purpose.
Some critaria to define critical supplier is the value of volume affair with it , value of their scorecard related to their performance, costs of premium freight provoked, for example.
Hope this helps

 

[ssz102]

Re: Supplier Evaluation SOP--How do I Define Major and Minor Suppliers?

does your company have a details definition of vendor for major or minor?

according to my experience, the major vendor mean's manufacturing key spare parts or critical material or called structure parts
and the minor vendor mean's produce accessory material including packaging bags or carton and so on

for the supplier audit has these type that system and process and product audit, so which is type you need to audit

 

[Bev D]

As Jim commented my organization uses a risk based approach.
the first cut is based on their ability to shut us down or harm our customer in some way. (COST is not a risk item). This includes material used in the product; material used to manufacture, ship or service the product; any service necessary to manufacture, ship or service the product (this includes electricity, data and phone)

Next we look at the stability of the supplier and the difficulty of getting a second supplier should the primary go down (thru financial, environmental or political reasons). So a sole source supplier in outside the US in on a fault line, hurricane/flood zone or politically unstable region is a critical supplier. A supplier of a commodity part such as paper towels in a moderate climate, non earthquake zone is a non critical supplier.

We are moving to NOT physically auditing even our critical suppliers after the initial selection process. We don't physically audit our non critical suppliers at all. We do monitor performance and finacial stability. We also take mitigation action for really critical high risk suppliers...we have found this to be a musch more effective approach to supplier management...

 

[Asant]

Re: Supplier Evaluation SOP - How do I Define Major and Minor Suppliers

Thanks to all :

The reason why I need to categorize suppliers is to determine the audit frequency. For us the audit frequency is based on the supplier category. Critical suppliers are audit every 2 years and minor and major every 5.

Also I am trying to determine which supplier can be audit by survey and which require a site audit.

 

[ssz102]

Re: Supplier Evaluation SOP - How do I Define Major and Minor Suppliers

i want to you what is difference for survery audit and a site audit you said?

in my own experience, as long as the condition is acceptance, you need to audit on site for your supplier, unless ,the adress of vendor is located in another country and other condition you don't reach it

 

[somashekar]

Re: Supplier Evaluation SOP - How do I Define Major and Minor Suppliers

Thanks to all :

The reason why I need to categorize suppliers is to determine the audit frequency. For us the audit frequency is based on the supplier category. Critical suppliers are audit every 2 years and minor and major every 5.

Also I am trying to determine which supplier can be audit by survey and which require a site audit.

If you have a method to classify your parts per an ABC analysis, then your suppliers who supply parts can get automatically classified based on this ABC. (Critical / Major / Minor)
You can then apply your audit criteria accordingly...
A search in Google for key words "ABC analysis" will get you lots of info about this Pareto analysis method in Inventory control.

 

[Mondo 22]

Re: Supplier Evaluation SOP - How do I Define Major and Minor Suppliers

Has anyone got an example Supplier Questionnaire that I could review.

Thanks,
Ray