How you do choose suppliers?
Our team visits the plant or area where
materials are produced or manufactured and
thoroughly check the quality. We also take
feedback from current customers of the same
supplier.
What is QPL?
For any product, there are certain
specifications to be met. We follow a sheet and
match the criteria.
Which are the key procurement
metrics?
We usually follow a timeline in which
the material needs to be supplied. If there is
delay from the supplier, we do a proper check.
We expect best quality for the material
delivered. The costing is also crucial.
What is risk management?
There is always a risk while dealing
with different suppliers. In case the material is
not delivered on time, we usually keep a back-
up plan or another vendor so that our work
does not stop.
What would make you search for
a new supplier?
For a new supplier, we follow a proper
system. We check the facility, auditing is done.
It’s not necessary that the new supplier should
have good speaking skills. The product quality
should be good, no compromise on that.
How do you handle delay from
supplier?
If there is a genuine reason, we give
some more time. Else we start contacting
other vendors. I will tell you about one
incident that happened some time back.
Company A had given out an order to the
supplier, but it could not be delivered on time.
The supplier claimed that some unit at their
manufacturing house had caught fire. But
they would deliver the material after a few
days. So, company A had given them some
buffer time. At the same time company B was
also dealing with the same supplier. They
physically sent a team at the manufacturing
unit to inspect the fire. They noticed that the
situation was bad. The whole water supply at
the unit was damaged. Company B decided to
change the supplier as they didn’t want any
further delay with the order.Prannoy Anto Joseph
Senior Associate, Supply Chain,
Allergan India Private LimitedFormer Chief Manager - Procurement, Abbott Healthca re Pvt. Ltd.
Senior Manager Admin and So urcing, Ecron Acunovalonger a simple task of
selecting the best quality for
the best price. Increasingly,
competitive markets make
understanding company’s
supplier’s economics more important than ever before.
Could you shed some light on Supplier
Relationship Management (SRM)?
In the initial phase of a relationship, moving
from an adversarial relationship to a more collaborative
one may have to be addressed in stages. Complicating
these relationships is the need to consider the strategic
and market value of a supplier (How much does a
supply shortfall cost?) and the nature of the relationship
(How can a supplier create even more value for its
buyer?).
Supplier partnerships often do not achieve the
desired benefits expected from the investments made
and, many times, this area of procurement receives too
little attention and budget, or is not involved in product-
development decisions early enough. Companies need
a focused supplier development program as part of
their overall supplier relationship management (SRM)
process to manage risk, encourage innovation, generate
returns, and identify cost-saving opportunities.happen is only a single vendor will be there, then we can’t
help but negotiate for a yearly contract.
How do you resolve disagreements with
suppliers?
We don’t choose vendors who do not agree with
our terms and conditions. Generally, vendors come back
to us and agree to our terms. It is their business.
Your role over the last 5 years?
It has not changed much. I am in this organisation
for 11 years. Procurement has come to me from 2010
onwards. Recently, the purchase committee has come
into existence. That is the only change. Earlier,
department head and management used to take call on
costings.
Who all are part of purchase committee?
All senior management is involved. Around 5-6
people will be there, including our chairman.
Have you ever had to cancel a vendor
contract?
We had cancelled one or two vendors in the past
because of poor quality. Some small vendors’ contract we
have cancelled. Not large vendors who supply equipment
and all.http://www.biospectrumindia.com | May 2017 | BioSpectrum COVERStory^29