Vendor assessment for partners in supply

Abstract

In 1992, as the purchasing function was beginning to take a more valued role within the business operations of Crosfield Electronics Limited, with a subsequently increased impact on profitability, it was time to review how we could change and what we could change, in order to increase purchasing's contribution to the bottom line of the business. While incremental improvements were already a part of the basic culture (both in the purchasing function and the business), a step change in the purchasing function's core operations was required to lead us from being a mediocre contributor to becoming a major contributor. The basic concepts of supplier partnerships were explored through a number of media: conferences, technical literature, and benchmarking practical experiences. In reviewing both the benefits and the pitfalls of supplier partnerships we recognized that we had to change our basic operating methodologies in order to manage and eliminate the risks and to develop and reap the potential benefits. A culture change was required within the purchasing function at Crosfield. This paper describes our approach, methodology and implementation, the barriers and results that we found, and the benefits and opportunities for improvement.