| ManEx Minute - 392008 - Supplier Communication |
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"There are risks and costs to a program of action. But they are far less than the long-range risks and costs of comfortable inaction."
-John F. Kennedy
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Issue 392008
Greetings,
This week I am compiling the newsletter in Chicago, IL while I visit the AT Expo. I had forgotten how much harder it is to complete regular tasks while on the road.
Although modern technology makes it easier, traveling highlights the importance of good communication.
Work becomes much more difficult when communication breaks down. This is true regardless of whether you are in the office or on the road. Both parties must understand the needs and requirements if they are to be met.
So, for this issue, the case addresses an important aspect of supply chain management, supplier communication.
Please click the " ManEx Case Solution" link, after the case, for the method recommended by ManEx.
As always, we look forward to your participation and feedback as you gain new insights and become a more effective provider of Electronic Manufacturing Services.
Sincerely,
David Sharp
ManEx, Inc.
Business Case - Supply Chain Management
Supplier Communication with the Purchase Order
North Eastern Company* (N.E. Company) is trying to improve supplier communications. They want to effectively convey their needs and requirements while automating it as much as possible to increase accuracy and compliance. They are looking for a method that will allow for consistent and complete communication.
Recently, they failed to request certificates of compliance for a few key components in a medical device they assemble. This oversight nearly caused them to ship the product late because they didn't have proper documentation from their supplier.
How can N.E. Company efficiently communicate specific needs for each purchase order and for each line item? How do they know which parts need special attention? How can they verify that those needs have been met?
Business Case Solutions
- Additional Communication- sending an email with special information or making a call regarding the PO will communicate the needs to the supplier, but would require the supplier to match the notes with the items, and allows for both the buyer and the supplier to forget the extra steps. Additionally, the added information is not officially part of the order which could be a problem if there is an issue with the parts.
- PO Footnotes- adding PO footnotes will make the additional instructions part of the order, but will still require the supplier to match notes with appropriate line items. Additionally, buyers must remember to add the notes and make them complete. Having a standard sheet from which the buyer can copy the notes will make the information consistent across orders, but can be a hassle.
- Standard Codes- Providing a standard list of notes and reference codes to suppliers allows for faster and more simplified communications. Buyers simply refer to the previously provided codes on the purchase order. This can reduce the length of the order because the full note isn't needed. However, buyers must memorize or look-up the codes and add them to the PO. They must also ensure that suppliers have the latest copy of the code sheet so they recent updates are applied. Suppliers must also refer to the list to ensure compliance.
* Company name has been changed.
ManEx Case Solution
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Here is a list of upcoming topics. Please email your thoughts, comments, and suggestions to mym@manex.com
- Part Shortage Tracking
- MRP by BOM
- Excess Inventory
- Order Status Updates
- Part Cross Reference
If you have any topics you would like to see addresses in future newsletters, please send them to topics@manex.com.
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ManEx Minute is a weekly email distributed by ManEx, Inc.
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| Article ID: 3141 |
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