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Ppt on supplier consolidation
1.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Consolidationconsistsin groupingtogetherflowsthatare usuallytreatedseparately. Supplier consolidation & System update
2.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Overview Need Challenges Activities Advantage System update overview Conclusion Contents
3.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Overview Supplier consolidation is one of those supply chain management strategies that is fairly easy to understand and just as easy to implement. It involves reducing the vendor base, using the company's economies of scale to lower prices, lowering incoming freight costs, improving quality, strengthening supply agreements, and then using these benefits to define the company's new vendor acquisition criteria. It's a continuous process and one that produces significant cost reductions.
4.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
5.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 One sources can save your business time and money. Ultimately, this translates to a higher return on your investment, and more money in your pocket.
6.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 To reduce organization current no. of the supplier To control and saving cost on the product To increase service level performance To improve quality of the products To increase delivery frequency To improve supplier relationship To stable production schedule Performance evaluation To improve purchasing processes Strong contracts agreements Lower per unit freight cost To increase purchasing power Need
7.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Long Business Cycle Identifying Points of possible conflict and Compromise Measuring Subjective Indicators of Supplier Performance Sheer Volume of Vendors to Vet Challenges
8.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Supplier base study CFT meeting with supplier before cost reduction on product RFQ send to the no. of supplier Cost negotiation with the supplier Supplier selection To collect information of buffer stock at existing supplier end To visit at existing supplier for mould condition review Tool movement existing supplier to new supplier Trial plan at new supplier PPAP plan at new supplier end PO released Activities
9.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Cost savings Time savings Return on investment ( ROI ) Increased buying power Reduced training requirements One familiar interface Less administration and meetings Less risk One support desk Competitive buy-back scheme Quality and performance Increase volume to supplier Supplier evaluation/certification Advantages
10.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
11.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
12.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
13.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Example of annum cost savings on stationary
14.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
15.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
16.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
17.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 An offer An acceptance of that offer which results in a meeting of the minds A promise to perform A promise or payment in some form Terms and conditions An agreement with specific terms between two or more person or entities in which there is a promise to do something in return for a valuable benefit known as consideration. Since the law of contract is at the heart of most business dealings, it is on of the three or four most significant areas of legal concern and can involve variations on circumstances and complexities. This type of agreements can be useful in a wide range of business, from supply of raw material in the construction industry to supply of goods to a retailer.
18.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Supplier management agreement Supplier quality management handbook Tool agreement Warranty agreement Confidential agreement Purchase terms & conditions Collect pending sign. Off an agreements from supplier
19.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Planning ahead is easier Providing security of supply for the buyer and of order for the supplier Pre-agreed pricing formula – predictable prices The buyer can get better price in return for the commitment Less admin- You don’t have to maintain purchase orders over and over again Advantages
20.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 General scope Duration Quality issues Quantities, Forecasts, Orders Pricing Payment Deliveries, Risk & Ownership Claims Termination Force majeure Limit of liability Disputes and law Some of the basic terms need to include in contract If the customers taking regularly source products from the same suppliers or if the supplier with some regular customers then it can be often benefit for both sides, to set up a long-term agreement.
21.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014 Conclusion
22.
© MAHLEMAHLE Behr
India Ltd. 20. März 2014
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