2006 Winter Symposium: Round Table and Panel Discussions: The Challenges of Purchasing in Today's Global Marketplace

This was our 2nd annual Manufacturers' Roundtable with a full room of about 40 participants at 4 tables representing large and small companies from North America, Europe, and Asia.  While three topics were on the agenda, one topic took the entire time:  How to manage quality in the global supply chain.  

While each table reported a variety of details there were five themes that emerged:

1. Communication 
1. The importance to thoroughly communicate specifications particularly on subjective items such as cosmetics and sound quality.
2. Understanding the cultural differences both language and differences in giving “bad news”.  
3. The importance of knowing that a vendor understands and is able to demonstrate understanding.
2. Trust
1. The importance of knowing that IP, designs and tooling are kept proprietary.
2. Knowing that vendors will deliver the exact same product each time, not “almost same”.
3. Knowing that the materials, treatments, steel, magnetic materials – will be the same as those approved.
4. Knowing that quality and corrective action system shown are actually used day to day.
3. Knowledge Base
1. Vendor engineers often need additional training and to become aware of new tools and technology.
2. A lack of understanding of the reasons behind design and testing choices can lead to errors in set up.
3. There needs to be an increased knowledge of international standards such as IEC and UL.
4. What is the true cost of the product
1. Choosing the low price source is not always the best choice.  A cheap price may mean less infra-structure and support.
2. Know the cost of training vendors, including travel and lodging.
3. Know the true cost of testing, qualifying and re-qualifying changes.
4. Know the cost of rejected materials and pressure to accept defects in order to meet delivery schedules.
5. Build Relationships
1. There needs to be a lot of face to face, phone and e-mail communications.
2. Build loyalty by paying invoices on time and offering higher product margins to vendors.

This theme was continued in the Panel Discussion, where the five panelists expressed their views and experience. You can view their presentations and thoughts by clicking on the names below. Disclaimer: Please note that these links lead to papers presented by individuals and the opinions expressed are their own personal opinions and do not necessarily reflect those of ALMA, its members, or the ALMA board.

Dan Digre
Jimmy Ying
Mike Klasco
Phil Bunch
Nancy Bunch

And to summarize, here's what people said about this symposium topic:

“It appears that the industry as a whole has realized that they are not only dealing with their direct contractors, but have to taken into account the subcontractors and their issues as well”

…Nancy Bunch, Phase Design

“The overall understanding of the Asian vendors and culture is something that most travelers can not really get a handle on due to limited contact and interaction.  I believe that the panel discussion may have been a springboard for several of the attendees to open up their minds a bit towards the things that they experience while in Asia.”

…Phil Bunch, Phase Design

“There seems to be a lot of agreement from table to table about what needs to be done, but the actual implementation of these things is easier said than done. ALMA can play a role by continuing to hold forums like this and communicating the topic back to the membership”

… Steve Tatarunis, Menlo East

“I wish we had more time - we could have gone on and on especially with the RoHS stuff. Regarding engineering issues at the supplier base, we touched on a lot of familiar stuff. The session was very good.”

…John Ronnas, Buyer, Bose

Continue talking about this topic in our ONLINE FORUM.

More from the ALMA 2006 Symposium: