Vendor selection process

mprecision

Registered
I am trying to enhance our purchasing process, for vendor selection, re election and communicating our expectations to our suppliers. We currently monitor vendor on time delivery/quality monthly and report it quarterly at management meetings. However, if there is an issue with either upon receipt, it is handled immediately. We are a small company and we use the same vendors repeatedly. For the most part, all raw material vendors are delivered on time with zero quality issues. I cant imaging logging their every PO, and creating extra work, when its at 100% for both. I can see maybe classifying them by risk level and maybe doing more work for a medium to high risk vendor. I think I am pretty confident with our process, however, when it comes to supplier surveys and communicating what is expected from us, to our vendors, we may slack in. I am looking for thoughts and ideas how to do this, without creating, not more, but pointless work. (As I said, small company who uses the same vendors repeatedly and anyone from receptionist to president could tell you off hand which suppliers have zero issues and which are more medium/high risk. So although we dont do things just for the audit, at times, we do need a better process/documentation trail for the audit when we know a lot of the "purpose" is through experienced knowledge. Looking for a system that makes sense and is realistic and effective.
 

AEOS_QA

Involved In Discussions
We were in a similar position and we have a internal Discrepancy report we use to record anything out of the normal relating parts, projects or supplier. This can be a Quality Issue but could also be a document that was not sent, packing issue wrong part supplied, invoicing etc.
I run a annual Supplier Review showing all the readily available stats from whatever system you use. No of parts ordered no of PO's late Deliveries etc and add the Discrepancies and Quality issues relating to the vendor to the report. It has worked really well for us as we can demonstrate a "Reporting Culture" as part of our Safety Management System (SMS) requirements, demonstrate annual supplier review (which forms part of our management Review) and reliably show escalation if the reports indicate more serious issues like Suspected unapproved parts (SUP), Defect report or Non-Conformances. Keep it as simple as possible using a Google or Microsoft Form, Spreadsheet, O365 list or anything you already use to encourage a "Reporting Culture".
Give it a unique number, link it to your traceable identifier, Project ID, batch, GRN, PO and a short description what is wrong and a reference to any other systems or reports you use if applicable.
I found it helped to address other ISO, AS or Aviation regulatory requirement and makes it easier to discuss the one or two major issues you get in the context of your demonstrated ability to continually deal with and improve on the small issues that may indicate something bigger might be behind them.
 

Big Jim

Admin
Something I often see is supplier approval is determined by evaluation of a supplier survey, a site visit (possibly including an audit), trial buy, or any combination of the three at the discretion of the quality manager (or whatever manager is appropriate in your company).

This gives you maximum flexibility. Some will only need a survey evaluation or a trial buy, but some will need all three because of how complex the material purchased, the idiosyncrasies of the supplier, or even customer requirements.
 

mprecision

Registered
Thank You!! Do you have a method/form that you use to commutate to your suppliers what is expected of them and how they are performing?
 

Big Jim

Admin
If you monitor supplier performance as a quality objective / KPI on a monthly basis you can identify those that are misbehaving and them determine what action is needed depending on circumstances. Or you can make it as complex as you want.
 

mprecision

Registered
If you monitor supplier performance as a quality objective / KPI on a monthly basis you can identify those that are misbehaving and them determine what action is needed depending on circumstances. Or you can make it as complex as you want.

Thank You Jim-

That's actually, exactly what we do. We monitor it monthly and if immediate action is taken, we do so, and then discuss it quarterly as well at the management meetings. I have a folder created per month for all supplier/customer on time delivery and quality ratings. Its included in the management minute meetings as well. I'm thinking we leave it as such and not complicate it more. During our last audit, the auditor asked how we communicate our expectations to our suppliers, and not sure if she was also insinuating their performance as well. Is it required, or does anyone take the step further to inform the suppliers yearly (or whatever time frame) with our expectations and their performance?
 
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