Suppliers are key to the success of manufacturing and service businesses?and the end users they support. Purchasing relies on its suppliers to provide the materials. products and services required by internal customers. when they need them and at prices they can afford. Business is awarded to suppliers based on a competitive procurement process. focusing on continuous improvements in technologies. practices. quality. service and total cost.
Many corporate sourcing organizations also honor the best members of their supplier communities with awards. citations and plaques. Key point: Supplier award celebrations publicly recognize exemplary leadership in performance excellence. as determined by purchasing's audit of suppliers.
'The best suppliers are strategic partners dedicated to providing products and services to American Axle & Manufacturing that feature outstanding quality. on-time delivery. excellent customer service and competitive pricing.' says Abdallah F. Shanti. vice president of procurement and information technology. The Detroit-based company's annual Supplier Recognition Awards congratulate 'an elite tier of suppliers' who have been rated on product quality. delivery. service. technology and cost-savings performance by a team from procurement. engineering. quality assurance. manufacturing and materials management.
Now. suppliers must prepare to conduct and compete for business on a global scale in order to achieve sustainability and growth. says Tom Sidlik. DaimlerChrysler's executive vice president of procurement and supply. In a September speech to suppliers. Sidlik describes DaimlerChrysler's substantial global presence as one of the world's leading automotive and service companies with manufacturing facilities in 37 countries. products sold in more than 200 countries. and services and products purchased from 'every region of the globe.'
'As we move around the world. we're finding good suppliers in China. Korea and other countries. These are the companies suppliers need to compete with for our business.' Sidlik says. 'Global businesses want to deal with global businesses.'
Interestingly. the global supply chain supporting Praxair Electronics aided the Praxair division in being named Supplier of the Year by X-FAB. the leading European-American foundry group specializing in mixed-signal applications. 'The quality of our products and services is crucial to X-FAB's success. Therefore. we carefully select and rate our suppliers in the areas of product quality. quality systems. environmental systems. on-time delivery. price and service.' explains Manfred Riemer. fab manager of X-FAB Germany.
For more than six years. X-FAB has purchased Praxair's semiconductor process gases. 'Supplier awards are highly competitive.' says Mark Gruninger. vice president. Praxair Electronics. 'The fact that this award comes from one of our most important European customers highlights the strength and reach of Praxair Electronics' global supply chain. We have the ability to consistently meet demands for high-quality semiconductor-grade process gases from customers in diverse geographical locations.'
By Tom Stundza
November 20. 2003