1. Supplier Maintenance and Development
Introduction
Sourcing New Suppliers
Qualification & Maintenance
Supplier Development

2. Supplier Qualification Workflow for XYZ Company
Design Engineering
Criteria
Purchasing Criteria
Operations
Quality
Design Engineering &
Component Manufacture
Experience working with Product Safety Standards,
EU Directives, etc
Price .
Good On-Time Delivery of Product and services
Effective ECN control
Good Product Identification and Traceability process
Packaging Standards
SPC Controls
Certified Inspection & Test Labs
ISO 9001: Registered Firm
RoHs Compliant

3. Approved Supplier Interaction Space
ISO, ATEX and
RoHs Compliant Facility
1st Tier SUPPLIER
Design Engineering Services
Components
2nd Tier Supplier
Parts & Materials
Inspection & Testing
Global Supply Network
Software

4. Approved Supplier Interaction Space
ISO, ATEX and
RoHs Compliant Facility
1st Tier SUPPLIER
Design Engineering Services
Components
40% Subcontracted
2nd Tier Supplier with
3rd 4th Tier Supplier’s
30% Subcontracted
Parts & Materials
Inspection & Testing
100% Subcontracted
Global Supply Network
Software
25% Subcontracted
PFR
Components
100% Subcontracted

5. Review and Decision Making Process
Focus on QUALITY at all levels of the supply chain
Validate all certifications or claims of compliance.
Ask the right QUESTIONS…..which is any question you may have about the supplier
Don’t be afraid to ask about subcontracted supplier qualifications and who qualified / certified them.
Where applicable, review their customer scorecards
Do your RESEARCH before you sign the contract
Understand the supply chain interactions
Inquire about the suppliers customer complaint handling process
Review the supplier’s Quality Management System
Review the supplier’s corrective and preventive actions system to see if it is effective in resolving internal and external nonconformities that arise.
Get ACTIVE
Participate in industry forums and conferences.

6. SWOT Analysis Strength Weakness Opportunity Threat Global Footprint
Very Low PPM history with good process controls
ISO, ATEX, Registered Firm
RoHs Compliant
Based on recent customer scorecards, very Good Quality & OTD (On-Time Delivery) hist0ry.
Company not well known
Price
Subcontracts Testing and Final Inspection of some products.
Some PFR (Purchase for Resale) subcontracted Products
Etc…..
Opportunity
Threat ?

7. Managing Sub-Par Suppliers

8. Supplier Maintenance & Development
Maintain a supplier scorecard for your critical supply base and keep it up-to date.
Rate your suppliers on an annual or semi-annual basis and place any poor performers on probation or promptly remove them from your ASL.
Ensure your supplier’s know how to respond to your concerns or request for corrective actions.

9. End