Explain the Development and Production Process to know gaps in the Supplier Process
There are three different platforms to sourcing products. Buying organisations need to define what their business model is and how their process operates, never expect the supplier will understand your business model and process.
Types of product buying platforms;
- Buy of the Shelve Product – No development, branding and packaging changes, PPS go to Production.
- Single Proto Sample – Develop Prototype, PPS go to Production.
- Salesman Samples – Develop Prototype, Salesman Sample, PPS go to Production.
- Within the above three options, one off production and replenishment.
The three sourcing platforms have a different level of process, model one been the simplest and model three been the most complicated with additional process and resources required. Where a supplier is manufacturing for model one or two, the supplier may not have the resources required to achieve model three.
The buying organisation needs to explain the development and production phase; each buying organisation will have a different requirement across the critical path and deliverables, the process needs to be clearly defined when on-boarding the supplier.
Read more about supplier on-boarding Supply Chain Solutions No.34 – Supplier Onboarding
Describe the business process and expected deliverables to the supplier and ascertain what the gaps are so corrective action can be put in place and or additional support allocate through the initial stages of the relationship.
Mutually through this process, both parties will learn about the supplier’s process versus the buyers need and the gaps that exist, it is then a decision if corrective action is engaged to rectify and support these shortcomings or if it is in interest of either businesses to continue.