Total Procurement Management
In automotive industry, it is clear that to find best qualified supplier with low cost is at the heart of business.
Nearly, 3000-4000 components are used in one car and these are supplied by various different suppliers.
The most critical suppliers for automotive industry is machined part suppliers. This group of supplier should be qualified very well for the first kick and controlled continously by customer.
Seeking this type of supplier in foreign country can be problemable for global companies due to asymmetric information conditions by means of locality.
Low cost suppliers may have some diffuculties with global companies as communication, cultural differences, quality control, continous process improvement, customer complaints.
If you need low cost but highly qualified supplier, you need to search very preciously and find them. After building a strong business relationship with supplier, you must check your supplier and support it.
As a summary, after searching and finding your supplier, you need to work with suppliers and improve them by means of proper communication,maintenance, quality, process and production control, selecting correct machine type, emergency supplying conditions like machine breakdown, natural disasters, technical problems of final machined parts.
Especially, for emergency conditions, your supplier may need technical support to handle difficulties or emergency affairs.
For all those problems that you will face to face in process of supplier research-definition in low cost manner.
Machining consultancy approach of Dantechs will help you about Total Procurement Management.