The purchasing team should support the needs of manufacturing through their usual purchase of raw materials, components, and services. Meanwhile, purchasing should invest resources to support engineering and technical groups, to understand the requirements of the new-product development processes. Along the line as a greater share of the accountability for handling key business processes shifts to suppliers, the supplier management system must be redesigned to support Desso’s new manufacturing processes. Supporting this initiative would require the Purchasing team to do the following:
1. Procurement of products and services at economical prices
2. Source products and services ethically
3. Assure correct specification that suits the process’ needs
During the transition phase, the Purchasing team must be responsive to the materials and services needs of the existing production process. Failing to meet these will diminish the confidence the internal users have in purchasing, and would jeopardize their operations.
b. Development of Supply Base
One of the primary objectives of the purchasing team is the selection, development, and maintenance of supplier base that would support Desso’s sustainability initiatives. To select suppliers that are competitive and have the potential to excel, the Purchasing team must be aware of …show more content…
As a number of suppliers are reluctant to share information with Desso and EPEA, the supply management’s primary objective should be to maintain open communications with the suppliers. The purchasing team should take upon itself the responsibility to select suppliers and to remain the primary commercial linkage with the buying firm, including any matter involving the conditions of the purchase agreement or other issues of importance. While, non–supply management personnel may contact a supplier about a particular item or question. This would ensure that trust is built. One of the methods to gain trust of the suppliers would be to form a joint cooperation to achieve cost, quality, delivery, and time improvements. Developing this collaborative relationships or alliances with the suppliers would earn their goodwill and will further Desso’s motive. Trust would make it possible for the supplier to share data with Desso without inhibitions, which in the future can result in a joint effort to reduce supplier’s cost structure through a mutual sharing of ideas. Trust can also result in a supplier working with Desso in the design of a new product. Such examples can be found in manufacturing industries, for instance, Toyota vertically integrates with its supplier base and provides them with technical know-how in order to achieve its Just-In-Time manufacturing model. Mutual commitment to the ideology and a