Purchasing and supplier quality
We will find potential savings in purchasing process.
According to Edwards Deming, supplier is a part of the system and has direct influence on quality and total cost of final product or service. That?s why it?s hard to ignore him in the subject of improving productivity and decreasing expenses. Practice of granting contracts based on price criterion, causes problems in downstream. A goal should be to receive particular article only from one supplier, on terms of long-lasting relation of loyalty and trust. Possessing the guarantee of collaboration will motivate him to deliver highest quality and constantly improve productivity, which will result in decreasing total cost of product or service.
Long-term relation with supplier and joined work on increasing level of quality and productivity and decreasing total cost, requires knowledge of continuous improvement methodology. Client needs proper tools to choose and evaluate suppliers. They both should also posses knowledge allowing them to solve current problems in effective way and to prevent them from appearing in the future.
