Supplier Relationship

Question 1

What are the four stages of supplier relationship development?

Answer 1

1. Screening and selecting the supplier
2. Working together day-to-day
3. Providing feedback and recognition to the supplier
4. Evolving the relationship or perhaps needing to end it

Question 2

How does a documented supplier management process benefit partnerships?

Answer 2

It increases the chances for a successful partnership with a mutual commitment for achieving higher customer satisfaction.

Question 3

When is the supplier management process best shared?

Answer 3

It is best shared with potential suppliers prior to selection and continued through monitoring supplier performance and supply chain dynamics.

Question 4

What is the purpose of frequently monitoring supplier performance?

Answer 4

To address new problems and prevent future problems by promoting continual improvement.

Question 5

What are the three leading supplier performance measures?

Answer 5

1. Quality
2. Price or cost
3. Service, including delivery

Question 6

How is a supplier’s overall performance score determined?

Answer 6

It is determined by a combination of data from quality, price or cost, and service categories.

Question 7

What are some potential areas of tension in supply chain dynamics?

Answer 7

1. Inventory vs. demand
2. Inventory vs. transportation obstacles
3. Production lead time vs. transportation lead time
4. Product variety vs. inventory
5. International trade laws and regulations
6. Technology interfaces
7. Cost vs. service level

Question 8

What does it mean to have a Diverse Supplier Base?

Answer 8

By creating and maintaining strong relationships with a diverse supplier base, an organization can ensure it remains agile and competitive in dealing with it’s mission and customer demands, and better control of supplier related variables that could ultimately impact agreements with customers.