The contract administrator will assist the supplier engineer in evaluating prospective vendors for outsourcing.
The contract administrator will review vendor terms and conditions issues, and recommend and implement a negotiation strategy that achieves goals for quality, pricing, delivery, and serviceability. The contract administrator will assist in successful inventory transfer. The contract administrator will update supplier demand forecast data when required. The contract administrator will issue confirming contracts or blanket purchase orders, with requirements for delivery lead time, pricing, and quality after management approval of negotiations.
Product Data Management
The PDM team can carefully monitor ECOs to all purchased parts for impact to POU and outsourcing execution. They can recommend when suppliers should be contacted early in the ECO life cycle to assess impact to the parts pipeline and help develop countermeasures— use as is, scrap, or modify/change. They can estimate cost, quality, reliability, and lead time tradeoffs for supplier parts as part of the ECO process.
WHY POU DELIVERY?
POU can reduce material handling and transactions. The supplier primarily becomes the material handling staff. POU delivery can reduce raw material levels stocked at the production facility and be staged at the exact spot where it is needed to minimize "inventory days on hand." It can reduce floor space needed to stock inventory, increase inventory turnover, and reduce the amount of working capital needed for inventory investment. POU makes supply delivery problems visual—one can see when there are part shortages on the floor or by use of andon signals. Point of use delivery can reduce manufacturing burden costs by minimizing or eliminating transactions. The supplier can easily monitor the status of on-hand assemblies on the floor, to know the pattern of parts usage and then be ready for immediate replenishment
in aJust-in-Time (kanban) manner.
POU—the supplier becomes the material handler, and assumes added ownership in the supply chain. POU can make parts shortages rapidly visible, increase inventory turns, and facilitate more linear material usage.
Outsourcing occurs when enterprises transfer internal "make" activities to an external supplier base. This transfer should be considered by assessing core versus non-core enterprise technology and processes, and by analyzing intellectual property issues. Outsourcing can apply to design, parts procurement, manufacturing, assembly, testing, kitting, shipping, and post-sales support. Outsourcing can add surge capacity, shrink overall product cycle time, improve time-to-market capability, and maintain or reduce growth in infrastructure costs (facility space and manufacturing labor) in relationship to sales volume.
To Be Continued
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