Vendor Control - How do you keep your suppliers accountable

[Arie0712 - 2010]

Hi all

I have few questions bothering me as I'm working in a little medical device company (35 employees); Unfortunately, and in spite of having FDA and CE certifications the sales are poor and it results in big intervals of contacting and ordering materials and products from our vendors.
I realize there's no magic solution, yet how do you keep your vendors accountable and how do you keep the quality level in such case?

By the way, vendors that were not active for the last year are becoming Non-Active; So - what actions should I take when I like to turn it to Active (remember that the company orders are not so many...)

Thanks, Arie

 

[arios]

Re: Vendors control

Shalom Ariel,

Since there is no a magic formula for controlling vendors, you determine the methods to make sure they provide you with products that meet your specific needs. In your case I would probably depend on having a good process for Incoming Inspection. If you have vendors that are more critical you can have more controls like expecting them to be certified, or you can perform supplier audits, or supplier surveys if you have no a feasible way to do supplier audits, although audits in my opinion are better.

With Incoming Inspection I don't mean that you have to inspect every single piece for every single dimension on a print. You can decide what's critical and what is not and using a sampling method to control your vendors.

To qualify new vendors you can consider a type of First Sample qualification.

If I can be of further help please let me know

PS. I like small companies

Alberto Rios
ing_alberto_rios(at)hotmail(dot)com

 

[Arie0712 - 2010]

Re: Vendors control

Thanks Arios for your promt reply.



I do perform 100% incoming inspection to some of our products (not for dimensions, but for discrepancies), I have records of certificates and I have audited our critical suppliers lately - all your advices are precise and correct - yet, honestly, I do find myself in an inconvenient situation as our orders are suffering big intervals and are not including big lots.
I sometimes get a feeling of nagger, though I'm the customer.

Having small lots' batches from PCB or a customized cable is leading our vendors to manufacture some of the products as samples and not as products which are under the full control of Engineering/production line.

A.P

 

[Rocke]

Hi Arie,

I am in exactly the same situation as you describe (25 employees, some products only manufactured in lots every 18 months).

I also use very tight incoming inspection, surveys and only audits or visits of critical suppliers, due to limited resources. In certain cases I have managed to get change notification in force, but sometimes I find suppliers are not willing, due to the small scale of business. Some of our materials are biological, and if the quality is best from a supplier that will not enter a contract with us, I sometimes approve them anyway, due to product quality consideration. This then means tightened inspection of each incoming shipment from that manufacturer.

It seems inconvenient to me, that your procedure renders a supplier inactive after one year if you do not order frequently? I think I would change that condition, so as not to generate unnecessary administration.

Best regards
Camilla

 

[Arie0712 - 2010]

Thanks Camilla

Low volume with big intervals orders should be taken seriously when deciding regaring appropriate supplier, and I'm talking about customized products - the reason is the additional (non) quality costs which will rise later.
It seems to me that this issue is very crusial for small medical device companies, since a most of the medical products are not entering the markets so fast (Regulations; Reimbursement; validations;Articles etc...).

Regarding turning supplier to be non active after one year from last order...I will explain my logic...

For all suppliers - I do not want to maintaine any quality certificates if I'm not working with the supplier; it worth nothing.

For customized products, I would like to verify the supplier status and capabilities and especially his capability to produce our product in the best quality that can be acheived. I would need evaluation/audit/re-validation of the production line (concerning the product) before going on.

Best regards, Arie

 

[Burgmeister]

Hi Arie

I appreciate the problems you have as we are also a small company, although recently we have grown significantly.

Small customers are really not important to many suppliers and can be treated very shabbily no matter what standards the suppliers claim to adhere to. Best advice I can offer is to do rigourous incoming inspection and try to use small, local suppliers wherever possible. It is not critical that they themselves have certification if they can show that they can reliably do the job for you, or that you are happy with results from your own audit of them. Small, local companies are far more willing to react to a customers needs than some big companies. Try to build up a rapport with them as well, the personal touch can go a long way.

 

[Arie0712 - 2010]

Thanks 'Burgmeister' for sharing your personal experience.

I agreed with the 'personal touch' you have mentioned - I do implement it in all my activities and mostly aware to its significance when dealing with customers/suppliers. It helps a lot, yet can not assure solution for every problem...if you order small batch once in 18 month's, then the quality will not be consist on it; it may be consist on attending the production (maybe re-validation).

Choosing local suppliers is preferable yet the circumstances sometimes forcing going to suppliers out of your country.

I just can bless you for continous growing, which will posibly eliminate the above problem at your company.

Regards, Arie

 

[Aqeel Abbas]

Re: Vendors control

I for one am not in favor of incoming receiving inspections. It is the responsibility of the vendor to do the final quality control inspection and send the right products. This should be clarified to the vendor through any suitable means and should be clearly mentioned in the manufacturing contract.

 

[samsung]

Re: Vendors control

I for one am not in favor of incoming receiving inspections. It is the responsibility of the vendor to do the final quality control inspection and send the right products. This should be clarified to the vendor through any suitable means and should be clearly mentioned in the manufacturing contract.

Every customer does define clear requirements of what s/he wants and every supplier makes sure to conduct a final inspection before delivery and tries best to send the right products for the simple fact that no one ever wants to lose a customer, yet there are plenty of rejections during the incoming inspections because something, in every instance, fails to meet the customer's 'acceptance criteria'; be it stated or otherwise.

One cannot avoid incoming inspection altogether however explicit the specifications /contract requirements might be.