Supplier Management

One of the many factors that influence the bottom line is supplier quality. Purchased materials planning is the establishment of goals, policies, and procedures that work together to create a continuous flow of quality materials that are on time and at a price that meets the needs of the business. Sales variances are major drivers in determining the need for materials. A major part of the supplier selection is the process itself. Partnering is a concept that began with the total quality management boom. The partnering concept can be applied to virtually all segments of the business. As purchasers and suppliers work more closely together, they can minimize business risks and establish and maintain low costs with high quality. Counterfeit electronic components is a significant growing problem in the electronics industry. There are industry standards that provide guidance on how to manage the risk of counterfeit material and components from getting into their manufacturing pipeline.