The key to supplier management is to plan
in advance before any contract is placed. The contract must
ensure that regular reviews at the suppliers' premises can take place before the
unexpected materialises. Managed appropriately, both
parties will benefit from the support provided by CMMI Ltd, a
win/win situation. It is not unusual at the time of the
contract agreement or bid for the customer
or prime contractor to disregard the
controls necessary if something goes wrong such as overlooking
adequate quality requirements and
penalty clauses. Was assessment
of a proposed supplier effective or as is so often the case
was the vendor chosen on price without adequate costing the
risks? It may be necessary to rely on supporting
conditions that may have been applied such as ISO 9001.
Selection of Suppliers
Suppliers should be selected against
previous performance based on previous good and bad experience
of suppliers and contractors across the company. The
Vendors Assessment Register shall record suppliers and
contractors by name, rating and product or service. This
will then provide a record of performance for a particular
supplier against product type. Today the Intranet can
provide information regarding the performance and service and
If a suitable supplier can not be found from either of these
sources owing to specialist capabilities required, the
alternative supplier may require to be subjected to vendor
A potential contractor shall be
required to fill in the Suppliers Questionnaire Form
enable a more detailed assessment, the Vendor Appraisal
Questionnaire OP06VAQ1.DOC may be used by BOS as a guide
during this assessment of a potential supplier’s
above completed form in-conjunction with any previous
knowledge of the supplier identified at the Vendor Review
meeting, will be used in completing the Supplier
Assessment Form OP06SAF1.DOC.
potential supplier may be included in the suppliers
register by one of the following criteria: -
CMMI Ltd is highly experienced in supplier management in the
Hardware, Software and Service Industries having worked at major
manufacturers and service industries in Europe and the USA as
well as providing contract support to small
organisations. Employing CMMI Ltd to support product assurance at a
suppliers premises is particularly cost effective where
manufacture is in the UK and the customer is abroad. Services
Start up and Risk Review
Ongoing Contract Support
Facilitate Change Control Boards
Factory Acceptance Testing of Hardware
and Software products.
In some cases to get the quality you want
when you want it, it may be a viable proposition to purchase
the supplier. CMMI Ltd have provided Management
Services in the procurement of companies.
Supporting templates are currently available
only through the consulting services.
Hold an existing recognised Quality approval, and be
assessed as suitable from Quality or Procurement's
knowledge of the company.
Return a Suppliers Questionnaire Form OP06SQF1.DOC which
they will have completed and are deemed to be satisfactory
under the vendor assessment procedure.
Subjected to satisfactory vendor appraisal meeting.
Vendor Rating Process
The rating for sub-contractors is assessed at a Vendor
Assessment Meeting held monthly, with Vendor Rating
representation from Quality Assurance, Engineering and
Procurement. This may
be undertaken at an ad-hock meeting in the event of a new
supplier being urgently requested.
The rating value will be assessed by Purchasing on
grounds of cost and service.
The Engineering rating will be based on capability,
performance, availability, co-operation and location.
The Quality rating will consider previous performance,
Vendor Assessments and Approvals currently held. Suppliers will be rated in three categories 1, 2, and Limited
1 A supplier who has continually
demonstrated an acceptable performance or has been subject
to a satisfactory vendor appraisal. This is the first
choice to be used where possible.
2 Signifies a supplier who may have a
recognised shortfall in their capability either as a
result of previous performance or assessed risk.
Category 2 suppliers are to be used where there is
no company with a category 1 rating who is capable of
meeting the requirements economically.
L (limited) shall identify sub-contractors
who are necessary for Bounty business but have failed to
maintain or be assessed as meeting one of the above
Verification of Purchased Products
If it is believed the supplier can not exercise sufficient
Quality Control, it may necessary to monitor the work at the
sub-contractor’s premises, in which case this will be made a
condition of the order.
The decision to undertake Verification or Factory acceptance
Testing (FAT) at source may also depend on the complexity of
testing or special equipment required.