Developing new supplier qualification plans

For this topic of the CPSM Exam, the supply management professional is encouraged to think about the implications of getting a new supplier on-board. Here are some of the topics in this section:

1. Tell your customers that you are changing suppliers: Let us say you are moving your courier from FedEx to UPS or vice-verse and the courier delivers parts to your dealers. It is a good idea to let the receiving folks at  your dealers know that you are changing the courier.It gives the dealer's people a chance to build contact with the new vendor who can be critical on some occasions.
2. Map the supply chain with the new supplier: Mapping the supply chain allows you to visualize where the new supplier will fit in and what else might be impacted.
3. Quality Systems: If you are an ISO 9000 company then the new supplier must follow certain processes so that you remain in compliance. Thus, if for example you have an inventory receiving system, the supplier needs to reference your purchase order so that inventory receivers can properly tally receipts with purchase orders placed.
4. Logistics systems: New suppliers must understand and comply with logistic systems that work for your organization as they start supplies.
5. Financial Analysis: Particularly for bigger purchases the financial standing of the supplier company might need to be verified. You do not want a supply problem if the supplier firm suddenly runs out of working capital.
6. Gathering requirements from internal/external customers: The supply manager needs to be alert and gather requirements from internal and external customers who will be impacted by the new suppliers item. Do not assume that everything will fall in place automatically because everyone was used to the earlier supplier/system and a new supplier may not immediately fit in unless requirements are clear.
7. Supplier Evaluation: In HR, employees need to know exactly how they will be evaluated ahead of the start of the evaluation period. It is a good idea to go over the evaluation criteria with your new suppliers so that they know what is important for your organization.