ManufactureLink Vendor Management
Many organisations that source moderate to large amounts of custom manufacturing services are faced with several challenges which cost them a great deal of time and money. Some of the activities that create these costs and inefficiencies can be summarised thus:
- Locating suppliers having the right capability and capacity at the right time to deliver your parts when you need them can often present major difficulties.
- When your regular suppliers can’t deliver due to their work load, finding other suppliers who can deliver can be time consuming and full of risks.
- When new suppliers must be found, the process can often take several weeks and again poses many risks when the supplier’s reputation is unknown.
- Larger companies often have strict vendor approval procedures in place that make it time consuming and costly to use new suppliers.
- Strict vendor approval processes and vendor management processes being costly to execute often result in an organisation limiting themselves to a few, already approved suppliers resulting in uncompetitive prices for manufacturing services.
- Using a limited, approved vendor list often results in suppliers overloaded during peak times and poor quality work being submitted due to the uncompetitive nature of their supply arrangements.
How ManufactureLink Can Save You Money and Simplify the Process
Currently, ManufactureLink’s online sourcing system is well established as a fast, efficient means of locating new suppliers having the expertise and capacity you need while facilitating the entire request For Quote (RFQ) process from one central, online location. Using ManufactureLink’s sourcing system in only a few minutes you can create a RFQ and submit it to our system to quickly obtain quotes to manufacture your components from hundreds of Australian suppliers at once. Using ManufactureLink’s online sourcing system is completely free of charge and using our system will dramatically reduce the time spent obtaining the quotes you need.
By using ManufactureLink’s system you are constantly obtaining competitive quotes and suppliers are driven to deliver quality work to ensure they maintain their ManufactureLink rating. This means you get better pricing and better quality of work meaning less downtime due to poor quality work.
But once you have located your chosen supplier and accepted their quote you are still left with the problem of having to approve multiple new vendors and entering them into your purchasing system. This is where MannufactureLink’s new initiative can assist.
ManufactureLink has received many requests from larger organisations wanting to tap into the efficiencies and cost savings ManufactureLink’s online system offers, to develop a way to use multiple vendors without incurring the costs of approving new suppliers. To facilitate this request, ManufactureLink have developed a method where ManufactureLink themselves becomes the one vendor in their system to act as a ‘portal’ to source from multiple vendors.
How ManufactureLink’s Vendor Management Scheme Works
To enable this scheme, ManufactureLink is first accepted as an approved supplier in the buyers system. The buyer then uses ManufactureLink’s online system to locate suitable suppliers and obtain quotes as normal. Once a supplier has been chosen, their quote is accepted through ManufactureLink’s online software as is normal.
But, instead of placing approving the new vendor and placing a purchase order directly, the buyers adds an admin fee onto the quote and submits the purchase order to ManufactureLink. ManufactureLink in turn places a purchase order for the original amount with the supplier. On completion of the job the supplier invoices ManufactureLink who in turn invoices the buyer.
Thus in using this scheme the buyer can source from as many suppliers as they like while requiring only one vendor in their purchasing system.
What the Admin Fee is and Why it is Charged.
For this service ManufactureLink charges an admin fee on each transaction as follows:
$30 + GST for purchase orders under $1,000
$85 + GST for purchase orders over $1,000
The admin fee is charged to cover our costs in administering this service. As well as the time it takes and consumables used, ManufactureLink also handles the warranty claims for goods supplied this way. Because we warrantee goods this way we carry appropriate liability insurance which adds to the costs of this service.
The admin fee is added to the purchase order as a separate line item. Some of our users of this scheme list it on the purchase order as an ‘agency fee’ or brokerage fee.
Additional Benefits From Using ManufactureLink’s Services
In addition to the already stated efficiency and cost saving s benefits from using ManufactureLink’s online system and vendor management services, you also benefit from a range of other resources such as:
- ManufactureLink monitors your lodged RFQs and ensures you receive the responses you need.
- ManufactureLink monitors your RFQs and makes suggestions where appropriate as to more cost effective or more reliable ways to produce your components.
- When no Australian supplier exists who has the capabilities you require, we will make suggestions or conduct searches to recommend overseas suppliers for your RFQ. Overseas suppliers can provide quotes through ManufactureLink for your requirements.
- When you are unsure of how best to manufacture your product ManufactureLink can offer advice or put you in touch with an appropriate R&D organisation to assist you.
- When making supplier selections, ManufactureLink can offer additional advice regarding which of our registered manufacturers would provide you the best service and quality workmanship.
For further information about Easy Vendor Management visit ManufactureLink Pty Ltd at http://www.manufacturelink.com.au
Use the IndustrySearch e-mail feature below and one of the ManufactureLink Pty Ltd team will respond to your enquiry directly.
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