The known fact is that there will be no single industry or single organization operates at any high level can put all inputs and efforts required to complete any task between start and end since it is not possible for any individual so far and is also not advisable in every aspect. Hence sharing a few responsibilities with the suitable vendor is the only alternate and ideal.
The vendor development is the activity of sharing a few responsibilities with trustable, carried out either by the organization for the organization or by the approved agencies for the organization for supplying the materials, parts, components, products, goods, etcetera to the organization through reliable vendors followed by a formal written agreement for a stipulated time.
The vendor development, defined as the series of activities such as identification of vendors, shortlisting, selection, explaining the purchase policies, education and, development carried out by the authorities of the organization for supplying the requirements through the selected vendors to the organization, against the terms and conditions.
There are two phases of actions involved with the vendor development activity. The activities between identification of vendors and selection of suitable vendors for the organization comes under phase-1 and, the activities start from explaining the purchase policies of the organization and up to the development of vendors comes under phase-2.
Generally, the vendors must have the basic qualities and facilities such as flexibility, intent to complete the task, quality conscious, promptness, product knowledge, necessary qualifications, total production facilities, sufficient floor space required for production and stocks, power backup facilities, adequate support with the qualified staff and skilled employees, own transport facilities, etcetera, comes in phase-1 action.
The organizations should give a detail explanation to the selected vendors connected with the product or assignment, includes, product parameters, applications, quality polices, etcetera, till reach satisfaction. In this continue, the organizations should educate the vendors in the way to understand the importance of their activities. Finally, the organizations should give confidence to the vendors in every aspect.
By developing appropriate vendors, the organizations can gain the advantages such as savings on investment, reduced working capital, reduced the size of floor space, reduced production time, increased production volume, retained the product quality, compete the market strategies, reduced mental stress, etcetera and can further gained by regular, constructive actions carried out through the professionals.
However, there will be some disadvantages to the organizations such as depended with vendors, sudden fall on production may happen when a single vendor stop the supply of parts to the organization, problem on control the product quality and supply of products on time due to various reasons, maintaining the secrecy, etcetera and can avoid by adding new vendors, conducting regular audits and inspections, etcetera, through the experts.
As per the study of the business scenario, the vendor development is an important activity, going to play vital roles in every production lines and assembly lines installed for manufacturing different products with high quality at less price decide the stability of the industries, globally.
VEL CONSULTANCY and the group of VEL CONSULTANCY feels proud to inform that we are successfully doing Vendor Development, followed by the systematic procedure to the industries, manufacturing different products and different business for the past two decades would like to be a part of success of every client from any part of the world and expecting more opportunities to serve, the best.