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Managing Suppliers For Continuous Improvement

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Executive Summary

Suppliers are the backbone of industry today, representing 60-70% of manufacturing or service operations cost. As supplier cost, quality and delivery improves, so will the customer's products and services. Few organizations, however, have effective supplier improvement processes. Little to no primary research is available for companies to benchmark their own processes. The benefit of this paper is to provide a model for use by manufacturers and service providers to evaluate, assess, improve, monitor, and develop their supply base over the long term. A set of criteria will be provided which represents the best practices in the literature and from company research projects. Best practices will be presented from the automotive, electronics, and industrial equipment sectors. This model can be used immediately to improve supplier results.

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