Partnership contribution to business planning, build partnerships with suppliers, in the short and long term.

Purchasing for the right quality, with the right delivery terms at the lowest overall cost.

Search new markets for new and improved products/services.

Develop a continuous development framework for the customer-supplier relationship.

Bottleneck items:

• Ensure continuous supply, if necessary at premium cost.

• Good forecasting and backup plans required.

• Good inventory data required.

• Proactive communication with suppliers.

• Develop strategy for resolving bottlenecks.

Strategic items:

• Good, detailed forecasts.

• Long-term supply relationship development.

• Make v. buy decisions.

• Risk analysis.

• Contingency planning.

• Logistics, inventory and vendor control.

Non-critical items:

• Standardized products.

• Order volume optimization.

• Efficient order processing.

• Inventory optimization.

Leverage items:

• Exploit purchasing power/scale.

• Market/order volume optimization.

• Targeted pricing strategies.

Identify current costs of the following:

• Information technology.

• Training.

• Travel.

• Insurance.

• Energy.

• Facilities.

• Contractors.

• Printing/publishing.

• Office supplies.

• Freight.

• Packaging.

The make or buy decision is part of the strategy towards world-class manufacturing.

Will a buy decision have less cost with equal or greater quality/reliability?

Will a buy decision maintain or improve flexibility and responsiveness of in-house capacity and the supply chain?

A make v. buy decision will consider:

• Advantages now.

• Advantages in the future.

• Technology trends.

• Investment implications.

• Health of supply base.

• Future supplies.

Consideration is given to the effects on:

• Marketing.

• Design.

• Personnel.

• Finance.

• Manufacturing.