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How would you reveal the importance of maintaining good relationship with suppliers in a JIT system?
SagittarianGal
A good and long-term relationship between organization and its suppliers helps to manage a more efficient process in inventory management, material management and delivery system. It will also assure that the supply is stable and available when needed.
Important thing about just-in-time inventory practice is that companies should build trust and have good relationship with their suppliers because just-in-time practice requires stable, fast and flexible supply of materials. Only if they have good relationship can this be done.
Wiki User
∙ 13y ago
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Fulfiling supplier commitments to deliver value?
Suppliers can deliver value by following these steps:Ø Fairness: Suppliers act fairly during the competitive process and they strive to ensure that customers continue to obtain all business benefits.Ø Honesty and Openness: Suppliers are honest and open about their aims, objectives and goals. Suppliers fully understand the need for public sector procurement activity that should be conducted with integrity.Ø Efficiency and effectiveness: Suppliers are committed to improve efficiency and effectiveness by pursuing continuous improvement, being proactive in suggestions and working with potential subcontractors.Ø Professionalism: Suppliers foster high level of professionalism by training staff, maintaining customers' confidence and focusing on the interests of the customersValue is not only delivered through production and operations of the company but suppliers can also add value to the business. There are various ways through which the suppliers are committed to add value to the business. Firstly, suppliers show fairness by ensuring that the customers are satisfied from the quality, which they are offering. Secondly, suppliers show honesty and openness in their aims and objectives, which also add integrity and hence increase the value. Thirdly, suppliers are aimed to increase the efficiency and effectiveness by pursuing on the goal of continuous improvement. Moreover, suppliers also show professionalism by training staff, maintaining customers' confidence and in dealings with buyers that also add value in the business.To boost up the morale of the suppliers in order to receive value products few commitments of the suppliers are to be fulfilled. Few of the ways to fulfill suppliers' commitments are:Ø Promote ongoing dialog with the key suppliers.Ø Do not mislead the suppliers regarding their needs like the terms of payment etc.Ø Do not take advantage of honest supplier's errors or mistakes.Ø Do not reveal one supplier's pricing, technology or other information without prior written permission.Ø Resolve issues, claims & disputes on a fair & factual basis.Ø Treat proprietary supplier information in a confidential manner.By adhering to a "Procurement" Code of Ethics - the Group Procurement and the Procurement local Entities staff sign (except for local exception) a Procurement Code of Ethics that is based on the following obligations: disclosure and confidentiality; fairness and competitive bidding; neutrality and objectivity; transparency and traceability.Any company has to follows a procurement approach with their suppliers based on the Credo: to obtain the highest-quality products and services at a cost that represents the best possible value, while maintaining the highest ethical standards, and taking the social and environmental responsibilities seriously. Suppliers can learn more about the company's requirements, policies and procedures and learn how to deal with them to meet the business goals while fulfilling the Credo responsibilities of the company.
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