Reduce Lead Times With Supplier Strategies

The traditional belief is that quantity discounts should be negotiated with suppliers since long lead time items need to be ordered in large quantities.

QRM Principle #6

Motivate suppliers to implement QRM, resulting in small lots at lower cost, better quality, and short lead times.

The purchasing department needs to be educated on the basics of QRM, and in particular on the pitfalls of ordering large quantities. Make lead time reduction the number one evaluation criterion for your suppliers. Here are some additional strategies that could be implemented as part of supplier partnerships:

1. Invest in the suppliers' improvement. Instead of the traditional arm's length relationship with your suppliers, work with them to help them improve their operation.
2. Create systems that enable suppliers to learn how to support your needs.
3. Include supplier proximity as a factor in supplier evaluation.
4. Challenge conventional choices of make versus buy, materials, and products.
5. Make suppliers responsible for maintaining point-of-use (POU) inventory. This simplifies planning and is a preferred system by most suppliers.
6. Reserve supplier capacity instead of booking specific part orders.
7. Take advantage of information technologies.
8. Share your forecasts and planning processes with your suppliers.
9. Alleviate suppliers' concerns about these nontraditional strategies.

QRM-Not Just Another Buzzword, But A Way Of Life.

AEC Presents at QRM International Conference

The Sixth International Conference on Quick Response Manufacturing "Keeping Manufacturing Strong" will be held June 5-7, 2006 at Monona Terrace Convention Center in Madison, Wisconsin. Two employees from Alexandria Extrusion Company will be presenting on the topic "Reduce Bottlenecks, WIP, Shop-floor Congestion and Lead Time with POLCA: A QRM Material- and Production-control (push/pull) System". Alexandria Extrusion Company has been a member of the QRM Center since 2003. For more information about Quick Response Manufacturing and the conference, please log on to www.qrmcenter.org.