Procurement risk management

Procurement managers: Look for these vendor “green flags”

When sourcing parts for precision machining, you can’t afford to work with suppliers that don’t deliver on deadlines. The vendor that promises a 6-week turnaround on a part that historically takes a few months? That’s a red flag as clear as day.

It’s not always immediately clear, however, which vendors will play an active role in risk reduction for your operation. You face a supply chain with longer and longer lead times, and you want someone who can handle those challenges (and solve a few proactively, too). 

Keep reading for “green flags” to look for in your vendors. With this insight, you’ll see who’s most at risk for supply chain disruption — and who’s built for speed without sacrifice.

Green flag #1: Flexibility in practice

Contract manufacturers with the size to take on work at scale aren’t always the nimblest. But when a vendor is flexible enough to actually dedicate time and effort to keep parts moving in the face of supply chain disruptions, your operation is protected.

Economic disruption, natural disasters or a boat stuck in a canal can all disrupt your supply chain. But a vendor that’s able to pivot is better built to weather those choppy sourcing waters.  

Some vendors achieve flexibility through supply chain integration. When your vendor doesn’t have to go to outside suppliers, this cuts down on intercompany POs and other bureaucratic bottlenecks. And they can pivot by swapping parts out at another facility before snags get in your way.

Further, a flexible vendor feels like a partner that’s on your side when deadlines loom. After all, whether a parts manufacturer can keep up with your operation will depend on their team as much as their technical production capabilities. If they care about your production schedule, they can adjust production priorities to make sure you meet your own deadlines.

Lastly, take note of their ability to help with inventory. The more your contract manufacturing partner can contribute to a strategic inventory program, the better prepared your operation will be to weather storms and still launch products on schedule.  

Ask your vendor:

• How do you handle 11th hour design changes?

• Can I reach out to you with priority parts?

• What type of “life of the program” contracts do you provide?

• Can you keep available stock of finished parts at your facility?

• What are your just-in-time part delivery capabilities?

Green flag #2: DFM guidance from the get-go

There are two ways a parts request can go. You get a “Yes we can make that,” done. Just what you asked for. Or you get a “Yes we can make that — plus, here’s how to make it faster and cheaper.”

Look for suppliers that give suggestions on how to manufacture the cost out of the part. For example, increasing the radius of a simple bushing on one component for an OEM manufacturer meant that the part didn’t need to be produced on the 5-axis mill. By using a larger tool, they ended up saving $100 per part and got it in 1/5th the time.  

These improvements for manufacturability add up, and they’re implemented that much faster when your vendor’s looking for them alongside you.

During the quoting process, look for:

• Early involvement from engineering team members.

• Alternate part, process and material recommendations.

• Improvements to bring down manufacturing time and cost.

• Access to inspectors, process engineers and plant managers as you optimize your design.

Who’s solving your sourcing headaches?

There’s no room for lackluster supply chain support in your operation. When supply chain issues flare up or urgent design changes fly off the engineers’ desks, you can count on MultiSource. 

We have modern facilities and equipment, as well as the technology and team to deliver industry leading solutions from prototype to production. Talk about your toughest production problems with a MultiSource rep.