General Improvements for Supply Chain (2/5)
Updated: 2 days ago
Purchasing unit employees should have sufficient knowledge of contract matters, especially managers. In this way, both a stronger stance can be exhibited in the proposal and negotiation phases, and plenty of problems can be avoided during the contract phase.
Some issues are not brought to the agenda by the suppliers in order to have an advantage in their hands. The supplier who is winning the bid tries to provide advantages by bringing these issues to the agenda during the contract ( For example the responsible party and the way to be followed when the expiration date is not enough, to whom the transportation cost of non-invoiced goods belongs, the solution of the problems that can be encountered in the provision of accounting documents, etc.).
In order to avoid such problems, it would be very useful to provide in-house contract training for procurement unit employees. It is also beneficial to have an up-to-date question bank and checklist for any problems encountered or encountered.
Contracts are not active but active, and they must be alive until the end of the purchase. Whether or not the terms of the contract are met can be up to date thanks to the milestones that will be put in place (date when the material is ready, dates of the transport parties, date of the certificate, etc.). Of course, these data are not very healthy by writing on paper or on any agent. Adding a menu to the ERP system and entering contract information such as the above mentioned tender information into the ERP system and inserting the signed document into the system will play an important role in active contract control and follow-up and will be of great benefit.
Even the best contract, if the content is not well understood, well-elaborated and not followed up well, will be limited in its effectiveness and even the possibility of damage is strong.
The general understanding is that the supplier list is updated only by the central quality control group.
The company's general supplier list must be on the ERP and must be accessed independently of the projects.
The supplier list in the ERP System should be company-wide. If only one person is allowed to add a supplier in each project (for example, an authority from the accounting department), the creation of a waste list is also avoided. The addition of vendors over the tax number rather than the name will also prevent duplicate data entries.
Blocking of the red-drawn supplier is not possible immediately in the current system. However, if the relevant units check the supplier list in the central quality control group at uncertain intervals, they can be prevented. Operation is entirely passive control and is not healthy. Thanks to the availability of a supplier-wide list of suppliers in the ERP System, red-drawn suppliers sent to the quality control unit in an approved form will be blocked on the whole company. In this way, the active control can be switched on.
Suppliers are a business partner in a sense and the risky supplier is also a risky business partner (Nebol, January 2014). It is necessary to have a detailed guide to the suppliers. Such supplier guidance is also required to be linked to supplier evaluation reports.
Just as existing suppliers are guided, the same list of potential suppliers to be explored and appended to the evaluation report will be very useful in the long run.
The continuous growth of the detailed supplier list within the ERP System will provide great comfort and confidence for projects that will start later in the same region.
It is necessary to establish a strong supplier guide that is constantly developing throughout the firm and the entity will add great value to the company.
Supplier site visits
Supplier site visits are made spontaneously rather than within a specific program and procedure. Thanks to the sector and/or product group based supplier visit reports to be added to the procedure, good preparation is made with the question bank which will be prepared as follows, as well as the mentioned visits can be recorded and put into the ERP system and checked back retrospectively. The supplier may be able to withdraw, check and update the previous report from the system during certain periodic visits.
Sample question bank;
Address of the company
Competent persons and titles
Company owner (Private / Corporate)
Year of foundation
Material procurement organizations
Terms of payment
Working days and hours
Information on the transport status of submitted materials
Transportation insurance procedure
Pricing to be applied to the sample
The persons, complaints, and delivery style of the complaints
Registration of order records
Recording of sales information
Delivery status of product certifications (Included with product / Also)
Procedure for return, defective or defective product
Delivery procedure for delivery notes and other accounting documents
Large and strategic suppliers to be invited to the firm
As the size of the supplier increases, face-to-face communication is communicated electronically and by telephone. This is a general reaction of large firms.
Large and strategic suppliers come to the company to meet face-to-face with project management and navigate the building site, the infrastructure will be of great benefit in establishing solid trust-based relationships.
In general, these types of visits are made by the supplier company but it must be encouraged by the purchasing units.
The visits of the suppliers also aim to determine the persons to be collected by the supplier company for internal intelligence. This can also be avoided by meaningful messages from the purchasing department manager.
A supplier's handbook, in which suppliers are provided with summary information about the company, the project, and the purchasing unit, will be very useful (Erdal, October 2011).
The location of the procurement unit in the project organization
Company quality policy
Completed projects (brief information)
Supplier performance evaluation criteria
Expectations from suppliers (In this section, what should not be done by supplier)
The fact that this book is printed in PDF format, as well as printed, will give the company a reputation for expressing its dedication to the subject. If it is sent to the suppliers to be worked on, it will have significant contributions in short and long term.
Short term contributions;
• Trust will be created in the new supplier (especially in the new region)
• Once the expectations and evaluation criteria have been established, suppliers will know how to behave from the very beginning and their attitudes will change accordingly.
• Begin with the supplier manual and continue with the supplier performance appraisal reports, the enterprise view will be acquired and the field dominance will be gained in the negotiations.
Erdal, M. (2011 Ekim). Satınalma ve Tedarik Zinciri Yönetimi (2. Baskı). İstanbul, Türkiye: Beta Basım A.Ş.
Nebol, E. (2014 Ocak). Tedarik Zinciri ve Lojistik Yönetimi (3. Baskı). İstanbul, Türkiye: Beta Basım A.Ş.
May 2, 2016 - Istanbul