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Article #3

Supplier selection

#3
From: Charley Scalies
Date: Wed, 16 Sep 1998 00:00
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Dan O'Leary wrote:

>We are working on our supplier selection criteria. I believe the reason
you
>have criteria is to 1) screen out potential supplies who may be trouble

>(not financially stable) and 2) to predict how good a supplier they
will
>be.

>In predicting a good supplier, assume I have only five questions I can
ask.
>What should they be and how should they be answered. In other words,
what
>are the characteristics of a potential supplier that have strong
>correlation with long term good performance.

I guess I am a cynic but I don't trust anything a new supplier tells me
unless it can be verified. Therefore, if I can only ask 5 questions they
would be "Tell me the name of your largest customer", ..second largest,
third largest, etc.," Then I would call the 5 customers to find out for
myself just how capable and reliable they are. Past performance is the
best indicator of future performance. (If I can only pick one factor.)

The characteristic that best influences a supplier's performance is the
amount of control it has over its processes. It is impossible to have
consistently good quality of delivery, products and/or service without
consistency; and you cannot achieve consistency without control. The
existence of a comprehensive, documented  quality system (e.g., ISO9000,
QS9000 and the like) is an excellent indicator of the amount of control
a supplier exercises. If the system has been verfied/registered/etc. by
an accredited, recognized  third party, you can have a fair degree of
confidence that the system described to you is valid. Without that I
wouldn't believe anything unless I verified it for myself. (The cynic
again.) I have seen far too many quality manuals that deserve the
Pulitzer Prize for fiction.
Just my humble opinion.
Charley
--
Charles J. Scalies/2000+
Resources for Managing Quality and Productivity
Visit our Resources Web Site at http://pobox.com/~scalies


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From: Charley Scalies <scalies@pobox.com>
Subject: Supplier selection
Date: 1998/09/16
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