Is it difficult to manage supplier of multinational company?


Key words: #qualifiedproduct #differentproductionconditions #supplierofmultinationalcompany #selectrightsupplier #identifycontrolpoints #classifysupplier #bettermultinationalcommunication


It is the goal of purchasing managers in each business to spend the least amount of money on the most qualified products.


At present, the rational division of labor in the manufacturing industry makes the cost greatly reduced.But it also brings other problems due to different production conditions of various manufacturers. There is big difference between the quality of the production of parts. Thus, how to manage these different levels of manufacturers becomes the key to the final product quality!


Both large suppliers and small suppliers have its unique challenges. If suppliers are too large, it often means that they are technology-driven and have product competitive advantage. Most of time, they are strategic suppliers while its flexibility is relatively poor. Some times, service is not in place also. If supplier is too small, generally speaking, it means its flexibility is high and service is good but product quality fluctuates greatly and the peak capacity is a problem too.


What’s more, how could we do if it is supplier of multinational company? We will face more challenges because of geographical distance, different languages, different habit and so on. And we must find a proper way to manage them.


First of all:

The right supplier must be selected and the supplier's control points should be identified.


Select the right supplier according to the needs and carry out survey against its quality assurance ability , supply capacity survey, and make regular assessment or coaching before cooperation.

Selecting qualified suppliers can be through following points mainly ,

1. Evaluation of supplier's production capacity.

2. On-site evaluation of the supplier quality assurance system.

3. Evaluation of product samples.

4. Compare the history of similar products.

5. Compare the results of inspections and tests similar products.

6. Experience applies to other users.



The potential suppliers can be classified by ABC according to the size of the purchase amount of the material. And the suppliers are divided into key suppliers, general suppliers and non-key suppliers. Then following controls can be carried out according to different suppliers:

1. Permanent Representative.

2. Regular or irregular inspection and inspection at the factory.

3. Set up supervision points to supervise and inspect key or special processes.

4.Require suppliers to report significant changes appear in production conditions or mode of production ,e.g. out-of-contract associations, etc., timely.

5. Organize management of technicians to guide suppliers to improve their quality and meet the company's quality requirements.

6. Relevant inspection records on process control are provided by the supplier.

7. Daily shipping inspection.


For better multinational communication, three aspects below are extremely important:

1. The supplier must have a contact window . And the person who plays this role should be clear about the customer's requirements and knows how to obtain information on all the issues related to the customer. He or she plays a role of coordination and supervision rather than deal with all problems by himself. 

2. Establish an effective principle with supplier. Under this principle, all information communication can be carried out by powerful team members so as to advance the project, open list of issues, dynamic update management. Both parties can regularly feedback to each other. Such principle could help prevent problems and solve problems quickly. Ultimately, it will promote the ability of suppliers to improve so that both parties could reach a win-win situation.

3. Know supplier's senior management team well and keep communication and coordination with supplier's senior management team, it will further understand the supplier's willingness to cooperate with the organization, as well as the supplier's short-term or long-term goals and plans, so that there will be much reference information when making procurement planning.

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