VENDOR DEVELOPMENT FOR MANUFACTURING

M A N A G E M E N T I N F O R M AT I O N S Y S T E M E X E C U T I V E M B A 1 ST Y E A R

Background
Every Manufacturing firm requires vendors who supply various parts, consumables, services, etc.

Since for almost every supply, there are numerous vendors, firms need to evaluate their vendors and they (firms) should get supplies only from reliable, capable and economical vendors to remain reliable and profitable.
This can be done through an efficient and effective vendor management system (VMS). This system should be able to handle all vendor related data and should be able to provide requested information in real time. ASSUMPTION: Only vendors with manufacturing capability are considered. Other suppliers can be considered as a subset of these in terms of VMS requirement.

PROBLEM STATEMENT
TO DEVELOP A VENDOR MANAGEMENT SYSTEM W H I C H I S C APAB L E O F S TO R I N G AN D R E T R I E V I N G V E N D O R R E L AT E D D ATA I N R E A L T I M E

Supplier Management Process

Information Required
General Information (name, address)
Vendor Name Name of the responsible Company Officer

Address (including Zip Code)

Head Office

Plant/Shop(s) Contact Point Name & Position Tel. Number FAX. Number

Registration Number
Capital (USD) Internet Homepage Address (URL)

Capacity of Plant (m2)

Established Year/Month/Date Contact Point e-mail address

Information Required
Commercial information

Information Required
Capacity (volume) and Capability (Technical)

Information Required
Quality aspects and miscellaneous

Database Structure
Actual database (backend) and GUI (front end) will depend upon what a firm uses / intends to use for ERP. (e.g. Oracle, MfgPRO, SAP, AS/400, etc)

Illustration :

I/P and O/P Formats

These are the formats (GUI) to enter and read compiled data.

For input, it is all the relevant information about the supplier.

Compiled data is vendor performance : Quality On time delivery Accounts payable Balance orders to be supplied

I/P and O/P Formats

I/P and O/P Formats

Decision Making
The decision of accepting or rejecting a vendor, developing a vendor or choosing a vendor to be a preferred vendor in his category of goods will depend upon the following parameters

Due Date / Volume Performance Quality Performance Cost Performance

The MIS should be able to give the above information for individual vendors

It should also be able to compare a class of vendors on these parameters

Supplier Scorecard

Thank You Any Questions ?