Purchasing management is a complex, multi-level process that includes many related operations. Market conditions are becoming more and more dynamic and unstable. That’s why only using of flexible, modern management tools can optimize purchasing processes.
The main goal of the Baltic Bearing Company-Riga purchasing system is supplying quality components for the bearing production in full order just in time.
Rating, selection, as well as the further development of components suppliers is one of the most important processes for this task solution.
There are three main stages in this process:
1. Search and selection of a supplier.
1.1 Preparing of a components request, which includes technical requirements, nomenclature and terms of delivery
1.2 Suppliers quotations
1.3 Approval of technical and commercial documentation
1.4 Auditing and scoring of each potential supplier
1.5 Making a qualitative-price analysis of the gathered information
1.6 Selection of suppliers, which satisfy the order requirements
2. Placement, production and acceptance of the order
2.1 Contract signing and monitoring of its deadlines
2.2 Acceptance and incoming control
3. Monitoring and development of suppliers
3.1 Monitoring of the quality indicators of each supplier at all stages of production
3.2 Claim-related work
3.3 Continuous analysis and development of suppliers
There are main suppliers selection criteria:
– Supplier ready to work according to customer’s drawings
– The supplier has its own production with a quality management system that meets the requirements of ISO 9001, ISO14001, IATF16949
– The supplier accepts and fulfills obligations in accordance with the requirements of quality agreements and contract terms
– The supplier is ready and able to develop together with Baltic Bearing Company-Riga
The initial audit of the supplier holds after confirming his readiness to work according to the conditions of the customer. It includes: audit of the supplier’s production, risk assessment, analysis of commercial and technical documentation. As a result, we have a score and reliability rating of every supplier. Based on the results of the analysis of the commercial offer of suppliers and their reliability scores, a register of main and reserve suppliers is formed. Wide range of suppliers is very necessary to provide an uninterrupted supply chain.
This completes the first step of the work and the stage of placement, production and acceptance of the components order is beginning.
We carefully monitor the quality of the purchased goods, providing not only the acceptance of the manufactured components by the quality service representatives of Baltic Bearing Company – Riga, but also monitoring the quality indicators (including the PPM level) for each supplier both during the incoming control and during the production of BBC-R bearings. Periodic audits of suppliers are carried out according to annual schedules.
Claim-related work is carried out using the G8D process with various tools (“Ishikawa diagram”, “5 why?”, etc.). The development and improvement of suppliers is carried out using the PDCA cycle, the level of suppliers in APQP projects is also monitored.
Thanks to using of this algorithm, supplier selection and development tools, the Baltic Bearing Company-Riga team guarantees the quality of products manufactured under the BBC-R brand.