Have you ever asked an engineer in the glazing industry about their primary criteria for selecting suppliers? What was the answer? It might be like that: “we work with only innovative suppliers because we have to stay ahead in the industry. The quality of the product matters and is essential to meet the specifications required.
Then, ask the same question to the procurement and the answer will be somewhat like “Pricing has to be competitive and for that, suppliers require to curtail the unit cost” Let’s dig deeper into Engineering and Procurement to understand it better!
All the mentioned concerns are meaningful, but they also indicate the risks of making decisions in silos. Keeping the goals and vision of the organization in mind is crucial and overlooking these encourages the possibility of costly risks as well as missed opportunities for innovation. The better way, to begin with, is to explore https://ftibelman.com and find out how it helps you with your procurement needs.
The time of the manufacturing and assembly cycle immensely depends on the design of the product. As a result, material and part flaws might cause costly delays or worse production interruption. The engineers have to make sure that the purchasing department is updated with these risks and the procurement needs to ensure engineering isn’t over-engineering new products.
The glass and glazing industry is evolving day in and day out and for innovation to happen, you require suppliers that venture into finding solutions to resolve complex challenges. For example, the Cascadia Windows created the first thermal gasket of its kind in the world, but it could not do it if it started focusing entirely on cutting costs.
Building a system for evaluating suppliers is a certain way or step that guarantees your organization’s success. Let’s have a look at the art on how to chalk out a list of your preferred suppliers!
The first step is, to remember what you’re buying and not to focus more on the cost of the total value. Comparing the cost makes sense when you compare commodities. But, when you want to break into a new market, it takes more than just a typical supplier. You need a long-term partner to help you boost your competitive position. These kinds of suppliers can be tough to find, but the value they add will be worth the additional expense per unit.
The second step is to be aware of your biases. No doubt, people make the presumption, it’s nothing but normal human nature. The presumptions might be like this, “Are lower suppliers less or more responsive? ”Is bigger really cheaper? Or “Do lower prices result in lower expenses? They don’t if they lead to higher inventory costs or design flaws. Take a step back and gauge your assumptions every so often throughout the project timeline.
The third step is to strive to empathize with your counterpart’s position. It’s not just about who is wrong or who is right. Rather, it’s about understanding the product innovation objectives of engineering and the aim of procurement to curtail costs. However, these goals aren’t contrary to each other. Make sure the goals of both departments align with your organization’s vision and ensure acceptable trade-offs for each other.
To find reliable vendors, it benefits everyone to get over isolated decision-making. Make sure you’re working together and discussing the concerns and objectives. Take these steps at the beginning of each project, as collaboration between both procurement and engineering will benefit not only you but your organization’s bottom line too.
Invite your counterpart by sending an invitation to discuss how you can set up a system to evaluate new and existing vendors on a regular basis. Don’t forget to keep in mind that the selection of vendors is a never-ending process. Therefore, it should constantly be evaluated and refined.