PROCUREMENT

Early Supplier Involvement (ESI)

• The adoption of early supplier involvement (ESI) in the product development process, ESI is defined as a form of vertical co-operation in which manufacturers involve suppliers at an early stage in the product development/innovation process, generally at the level of concept and design. This results in a better product, in less time, at a lower cost.
• Research has shown that Western automobile manufacturers obtained significant benefits by emulating the ESI practices of their Japanese competitors.

JIT II.

• Term JIT II coined by BOSE Corp to describe its innovative purchasing relationship, an alliance between a buying and selling organisation.
• The seller places an employee in the buying company replacing the buyer, planner and sales person.
• In the collocation (in-plant), concurrent engineering and continuous improvement with access to information promoting integration between supplier and customer
  

Procurement

Supplier Qualification/Certification.

• In order for new suppliers to conduct business with company ABC, a standardized assessment of supplier capabilities will be conducted using a common methodology.
• ABC’s Supplier Qualification Process provides a common approach to supplier selection globally. This process enables ABC to assess their suppliers’ quality management and environmental systems’ capabilities to ensure alignment with company’s overall Supply Chain Management strategies.
• Supplier qualification ultimately leads to a more competitive supply chain that benefits the customers and the organisation . The overall methodology includes quantitative as well as qualitative criteria

Supplier Development.

• Suppliers are valued as an integral component of the company's long-term success. Therefore the organisation gives the commitment to providing technical resources to its suppliers to support their development and enable them to achieve a sustainable competitive advantage.
• The organisation will able to leverage its global resources and strengths to assist suppliers in areas such as continuous process improvement, lean manufacturing, and quality management.
• In participating in the Supplier Development Process, suppliers may share in the organisations R&D and technology capabilities.