A Purchasing Manager''''s Guide to Strategic Proactive Procurement phần 9 doc

9/7/2006 10:15 AMSEA RAY PURCHASING MISSION orporate Purchasing, in support of the Goals and Objectives outlined in Sea Ray's Mission Statement, will strive to enhance Sea Ray's position

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SEA RAY'S MISSION FOR THE 90's

ea Ray Boats emphasizing our 30-year history, tradition, and heritage, will continue to lead the marine industry in the manufacture and sale of an extensive line of superior quality fiberglass boats

Our products will combine innovative styling,design,and advanced engineering concepts with distinct andprestigious brand images We will promote our growth, market share, and profitability by distributing ourproducts through a worldwide network of exclusive, owner-operated dealerships to whom we will provideappropriate training, support, and development

Our mission will be accomplished by continuing to attract and develop highly motivated and skilled

employees In support of our mission, the following statements commit us to:

≈ Produce high-quality cost-efficient boats using superior people, quality materials, stateof-the-art

manufacturing equipment,and facilities

≈ Provide our employees with a quality work environment and reward them for superior

performances

≈ Ensure that Sea Ray customers realize superior satisfaction with our products, suppliers services,

dealers, and employees

≈ Promote a partnership attitude with our suppliers in an effort to improve our products and services

≈ Designate dealers and sales locations that have the potential to achieve desired market penetration anddealer profilability while better serving the retail customer

≈ Employ market development strategies in concert with our dealers with the goal of expanding andimproving existing and potential dealerships

≈ Continue our international strategy of addressing foreign competition and opportunities by

emphasizing specially-designed,engineered,and manufactured products for international markets

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SEA RAY PURCHASING MISSION

orporate Purchasing, in support of the Goals and Objectives outlined in Sea Ray's Mission

Statement, will strive to enhance Sea Ray's position in the marine industry through development of a

world class supplier base that is capable of furnishing a product of superior quality and maximum value.

We will accomplish this through the highest professional standards of business practices and ethics while promoting partnerships with premier suppliers

We recognize the critical role of our suppliers in the support of our efforts and as such pledge our

commitment to:

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≈ Establish collaborative relationships with key suppliers in order to infuse new products, practices

and concepts into our industry

≈ Constantly grow in terms of awareness and knowledge of the marketplace, products and business

practices by maintaining open communications with key parties and partaking in appropriate

educational opportunities

≈ Represent Sea Ray in the highest professional manner while conducting business in an ethical and

forthright fashion

≈ Manage supplier relationships and assume a proactive role in the procurement cycle ensuring that

Sea Ray receives the highest value products and services at world class prices

≈ Promote the concept of value analysis and encourage our supplier base to practice this concept

within their organization in order to enhance the value of every purchased product

≈ Establish and aggressively pursue, on a continuing basis PACE goals and objectives in order to

lower the cost of quality within the Purchasing Organization and throughout Sea Ray

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≈ Produce measurable results favorably impacting Sea Ray's profitability and image

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THE PURCHASING PROCESS

ou have a product or service and you want to sell it to Sea Ray, but where do you start? The

first step is to do your homework!!!

I Get to know Sea Ray and the Sea Ray product

A Conduct a literature search

B Visit a dealer

C Talk with our customers

D Visit a marina They are a great place to meet boat owners and most are eager to tell you what

they like and don't like about their boat

II Decide which of your products offers the best match for Sea Ray's needs

A Will it add value to the Sea Ray product?

B Are we presently using a competitors' product or is your product unique and therefore new to Sea Ray?

C From a quality standpoint, how does it stack up to what we are currently using?

D Are colors a consideration? Are you able to color match to our decor?

E How will your product hold up in the marine environment? Extreme heat, high humidity, salt

water, suntan oils etc are encountered frequently

You've done your homework and you feel confident that your product or service will provide

value to both Sea Ray and Sea Ray customers It's time to introduce yourself.

I Schedule a visit with the appropriate "Commomodity Purchasing Manager." The individual contacts

and phone numbers are contained in this publication To ensure the best use of both your time and ours

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Sea Ray recommends that appointments be made prior to your visit

II Develop your presentation to address key products that offer the greatest value to Sea Ray and its

customers Focus on how your products will enhance the value of ours

A Offer factual test results that support your claims

B Make certain that you understand the environment in which your product will be used and be

prepared to discuss reliability issues Again,factual test reports supporting your claims are extremely

helpful

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C Most of your time should be spent discussing your key item(s) but don't neglect to make us aware

of all your products and especially any unique capabilities your company may have

D Pricing is a critical issue and will be discussed from the initial meeting through final approval

You and your Sea Ray contact agree that there may be some common ground Where do you go

from here?

I All products used on a Sea Ray craft must be approved by our Product Development & Engineering

(P.D.&E.) group and the appropriate manufacturing locations The appropriate Commodity Purchasing

Manager will guide you through this process Suppliers are expected to have conducted their own

product quality evaluations and will be requested to supply a copy of their findings along with the

samples submitted for Sea Ray's evaluation In certain cases, Sea Ray may require industry certifications

(i.e N.M.M.A., A.B.Y.C., U.L., S.A.E.)

II Prepare your formal quotation Your Commodity Purchasing Manager will assist you in

understanding Sea Ray's volume requirements and will provide you with applicable prints if available

Your quotation should include but not be limited to the followin

A Your part number, Sea Ray part number, if available, and description

B Price *

C Shipping and payment terms

D F.O.B point

E Your warranty policy **

F Term of the quotation

G Tooling requirements

H Leadtime requirements

III Quotations are evaluated on a "total cost" basis By this, we are referring to all the costs associated

with purchasing a particular component including installation labor, freight, payment terms, inventory

costs, estimated warranty costs, etc All quotations are confidential as is Sea Ray's current pricing

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* Pricing: The more detail you provide us in terms of raw material content, labor and overhead, the

better we will be able to evaluate your proposal

** Warranty: Sea Ray warranties its product, parts and labor, for a minimum of one year from the

date of sale to the consumer Suppliers that exceed these guidelines receive more consideration than

those that do not Some key components may require a multi-year warranty Your Commodity

Purchasing Manager will provide you with details

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Sea Ray accepted my bid and approved my product Now what? Will I be receiving orders?

How? When?

I Sea Ray utilizes a Material Requirements Plan (M.R.P.) to forecast and plan our requirements

Various planning tools are in place to assist the buyer in scheduling orders in accordance with the

suppliers' leadtime requirements Be reminded that the marine industry is dynamic Sea Ray takes pride in meeting the customers' requirements and therefore you can expect a certain amount of fluctuation in our

long-range forecast The degree of "nervousness" in this schedule is of course dependent upon the type

of product being purchased

II Important facts you need to know about Sea Ray Purchase Orders

A Orders are generated via our in-house computer system and are generally FAXED to the

supplier directly from that system If for some reason you feel that an original is necessary, you and

the appropriate Commodity Purchasing Manager and Buyer can work out the details

B Be advised that orders may come to you from either Corporate Purchasing or the Purchasing

department at the individual manufacturing locations

C If for some reason you are unable to meet the requirements as stated on the purchase order, you

are expected to contact the buyer as soon as the discrepancy is discovered Advance notice of an

impending delay is imperative

D Sea Ray assumes no responsibility for materials purchased or produced in excess of that which

is called out on the purchase order This is done as much for your protection as ours We strive to

keep our inventories low and encourage our suppliers to do the same Through properly managed

inventories, we are better able to meet the needs of our customers Further, excess inventory

increases the likelihood of obsolescence which, in turn, raises the cost of both your product and ours.III When invoicing and generating the appropriate packing documents, please be aware of the following requirements:

A All cartons, packing slips, and invoices must be marked with the Sea Ray part number and the

purchase order number

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B The tining of payment terms becomes effective upon the receipt of the invoice or the material

whichever is later

C When Sea Ray is responsible for the freight charges, it is imperative that shipping instructions

on the purchase order are explicitly followed

IV In the event that an item we purchased needs to be returned, the following procedures apply:

A We will call for a Return Goods Authorization (RGA) number when required by the supplier

All returns will be accompanied by a Sea Ray return goods form that describes the reason for the

return and in most cases the requested disposition (repair and return, apply to next order, issue

credit, etc.)

B It is a Sea Ray policy that all returns to the original supplier will bedebited to that suppliers

account upon the return This procedure ensures that the proper accounting is taking place and that

the part disposition is acted upon in a timely manner

V In select cases Sea Ray may elect to utilize a formal purchasing agreement where the components

are either of very high value or unique conditions are present These contracts are used to protect both

Sea Ray and the supplier by documenting key issues associated with a purchasing agreement

PLEASE UNDERSTAND THAT THESE ARE GENERAL GUIDELINES AND ARE NOT IN-

TENDED TO BE A COMPREHENSIVE SUMMARY YOUR COMMODITY PURCHASING

MANAGER WILL PROVIDE MORE DETAILS AS NECESSARY

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WHAT IS

People Achieving Customer Expectations

ACE is the name of our continuous improvement process which was implemented in the

Spring of 1991 Since the inception of the PACE process, Sea Ray has continued to lower the cost of

quality (the cost of doing things over) and improved its efficiency which has resulted in a higher quality

product Employee participation in PACE means that product improvement is no longer the sole domain

of engineers and management Today, thanks to PACE, every employeeof Sea Ray can demonstrate their personal commitment to making a better product by suggesting improvements through the PAC

Suggestion Process

And, the best is yet to come!

Total involvement is what PACE is all about As a supplier of goods or services to Sea Ray, your

participation in the PACE process is not only encouraged, but is expected You can begin right now!

After reading the PACE pamphlet, take a moment to fill outa PACE Suggestion Form with your

thoughts or ideas as to how we can improve our product or process With this simple step you can

become a part of the Sea Ray Team and join us as we Pick Up The PACE in the marine industry

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SUPPLIER PERFORMANCE RATING

ea Ray recognizes the valuable role suppliers play in its success Exceptional suppliers enable

Sea Ray to meet and exceed its customers' expectations in everything from product quality and

performance all the way down to replacement parts orders Sea Ray also recognizes that timely and

constructive feedback is vital to our suppliers' continuous improvement efforts To fill this need, Sea Ray has developed a detailed Supplier Rating System

The objective of this Supplier Rating System is to assist our suppliers in improving the overall quality of

their products and services This is accomplished by providing clear, concise, and user friendly feedback

to the supplier in a constructive manner so that appropriate corrective action can be implemented

The Supplier Rating System addresses fifteen separate performance criteria and assigns each a weight

factor based on its relative importance Ratings, done on a regular basis by a number of Sea Ray

departments and functions, ensure a fair and companywide evaluation Suppliers are given a rating from

one to six on each criteria, with six being the most desirable The combination of this raw score and the

weight factor yields an overall performance rating that is then converted into a scaled score Suppliers

are encouraged to use this performance feedback as a foundation for their continuous improvement

efforts

In addition to the ''Supplier Rating,'' Sea Ray has also developed a "Supplier Representative Rating" that

is designed to gauge the value a supplier representative contributes to the Sea Ray - supplier

relationship Here again, there is a defined set of criteria that is given a rating of one to six, with six

being the most desirable Again, these ratings are compiled from input provided by both manufacturing

and corporate personnel Both the representatives and their respective suppliers will be given a copy of

the rating and are encouraged to use it as a blueprint for their continuous improvement activities

Contained on the following pages of this section are samples of both rating forms If, after reviewing

them, you have any questions please contact the appropriate Commodity Purchasing Manager for further discussion

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PALM COAST PLANT

100 Sea Ray Drive Palm Coast, FL 32037 904-439-3401 (Fax) 439-2060

TRANSPORTAION DIVISION

5501 Island River Drive Knoxville, TN 37914 615-522-8362 (Fax) 524-8916