Saturday, August 8, 2020

Continental’s Supply Chain Management Supplier Evaluation processes

 


    Always Continental and its Supplier ensure the quality of supply chain processes and continuously improve in order to meet their challenge, the following tools and processes are standard at Continental Automotive.  The results of the continental are incorporated in the annual evaluation of Strategic Suppliers called BASE (Basic Annual Supplier Evaluation). The supply chain processes in Continental evaluates and optimizes based on the MMOG/LE NP (Material Management Operations Guideline / Logistics Evaluation New Platform). The Continental Automotive Group all the results which are provided by the MMOG/NP to ensure high supply chain performance towards its customer now and in future. The BASE is an important tool in the strategic supplier management process at Continental and results in influencing sourcing decisions, serve for supplier selection, and supplier classification.


Supplier Evaluation

    Continental evaluates the supply chain performance of its Suppliers on a monthly basis using standardized evaluation criteria.


These are the Standardized evaluation criteria,

  1. Delivery Capability,

  2. Preferred Sourcing Models (PSM),

  3. Self Assessment.


    Their target is to achieve 100% in the above three criteria. Each criterion is considered with a certain weight according to its importance when calculating the total result SCM performance is reported through the Supply On Performance Monitor. Supplier Evaluation (BASE). This yearly evaluation is also communicated to the Supplier through the Supply On Performance Monitor, Depending on the outcome of the evaluation, the Supplier is expected to define and implement appropriate corrective actions. If the SCM performance fails to meet the committed goals the Supplier implements immediate corrective actions and provides a get-well plan upon request. The plan should include actions of how to solve and how to avoid these sorts of incidents in the future. Deviation in actual performance may result in corrective actions to bring the Supplier's SCM performance in line with Continental expectations.


1 comment:

  1. Educative. Would like to know about the effectiveness of this implmentation

    ReplyDelete

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