We work across a number of industries with our portfolio companies and one of the many things I see over and over again is how suppliers define defects - BEWARE, is all I can say.
I sat in on a meeting as an observer to a company we were looking to work with and I was stunned at the supplier's behaviour; I couldn't figure out if they were that arrogant, ignorant or thought that their client grossly lacked any sense of intellectual acuity.
This particular supplier (a globally recognized brand) kept defining defects as 'anything that stopped production'. By 'their' definition they had an outstanding performance record that they were only too happy to promote.
Taking a closer look at supplier performance there are a number of factors that come into play:
= on time delivery
= order accuracy
= incoming inspection defects
= product quality
= cost fluctuations
= program management & effort
= returnable containers
= defective component handling
= cost of rework
Add these factors in and one quickly sees the suppliers true colours - one not to do business with.
A well balanced supplier scorecard is key to understanding the impact a supplier has on your business.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment