Developing A Lean Supply Chain Management Process Essay

3. When you have a complex supply chain, supplier evaluation and reduction is a great step that can be taken towards having a lean supply chain. Supplier evaluation and reduction is a continuous process within organizations and forms part of the pre-qualification step within the supply chain management process, although in many organizations it includes the participation and input of other departments and stakeholders. Most organizations experienced in collecting supplier evaluation information prefer doing so using five-step processes for determining which supplier to approve or reject. Their processes often take the form of either a questionnaire or interview, sometimes even a site visit with each supplier, and includes appraisals of various aspects of the supplier s business including capacity, financials, quality assurance, organizational structure and processes and performance. Based on the information obtained via the evaluation, a supplier is scored and either approved or not approved as one from whom to procure materials or services. In many organizations, there is an approved supplier list (ASL) to which a qualified supplier is then added. If rejected the supplier is generally not made available to the assessing company s procurement team. Once approved, a supplier may be reevaluated on a periodic, often annual, basis. The ongoing process is defined as supplier performance management. A lot of companies use a checklist system written by Ray Carter for DPSSShow MoreRelatedAgile and Lean Supply Chain Management1719 Words   |  7 PagesLeanness means developing a value stream to eliminate all waste, including time, and to ensure a level schedule. Agility means using market knowledge and a virtual corporation to exploit profitable opportunities in a volatile marketplace. 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