Procurement For X Overview

What is procurement for X?

This is the role of procurement in product reliability, cost, quality, speed, etc, when developing a new product and deciding which materials and/or components you need to purchase.

New product design and development go together with purchasing the elements required to actually manufacture the product being designed. There cannot be product design without procurement and vice versa, as procurement allows you to go into production.

Procurement for X's goal is to find quality suppliers, too. So they'll typically be ISO 9001 certified and will understand that the product needs to undergo reliability testing before it gets shipped in order to qualify it and reduce your risks.

Some key points we cover:

► Picking components/materials that are made in the same country where assembly takes place where possible. This will save on both costs and time and if there's a problem they can fix it quickly rather than trying to return the goods to them from abroad which could be very troublesome.

► Choose suppliers who can do the job consistently well. Implementing supplier reviews, quarterly business reviews, scorecards, etc, will help you evaluate the suppliers over time. They may be scored on the efficacy of their internal systems.

► Screen part suppliers based on their reliability test reports. Many buyers don't do this, but there is a lot to learn from the testing reports, so procurement managers should really request test data. Without it, it's hard to assess product reliability and performance.

► Consider paying more for parts that have already been certified. This gives you extra assurance that your product will be approved as the testing has already been conducted successfully.

► Choose suppliers who're a good fit for your business. This would be a supplier who understands your needs, schedule, etc. As then you will have a better working relationship.

► Source standard 'off-the-shelf' products where possible. This should be the procurement manager's first choice as a custom part increases costs and risk.