Are you facing any of these challenges?

      all_inbox

      Missing delivery deadlines due to supplier’s long lead time.

        

      add_task

      Increase in customer complaints due to supplier raw material/part/component issue

        

      inventory

      New product launch not successful due to supplier incapability

        

      meeting_room

      Supplier not able to meet Q/C/D parameter

        

      category

      Low productivity due to material unavailability

        

      emergency

      High risk of supply continuity due to import dependency

        

      SCEP – The purpose

      Supply chain partners’ success is an essential element in the survival and growth of any business. Therefore, it is important to ensure that the suppliers understand the expectations and supply the materials to the manufacturers in the right quantity at the right time and with the requisite quality.

      The purpose of SCEP is to develop and improve suppliers’ capabilities so that the large manufacturers realise their business goals.

      SCEP approach

      01

      Critical suppliers identification

      02

      Supplier assessment

      03

      Improvement projects implementation

      04

      Supplier foundation building

      Stage 1: Critical supplier identification

      Critical suppliers identification

      Supplier assessment

      Base building

      Improvement projects

      Objective

      To identify critical suppliers to ensure supply continuity

      Key activities:

      Critical supplier’s identification based on agreed criteria

        

      Supplier performance analysis

        

      Supplier’s selection for strategic sourcing

        

      Stage 2: Supplier assessment

      Critical suppliers identification

      Supplier assessment

      Base building

      Improvement projects

      Objective

      Measure capability of critical suppliers

      Key activities:

      Quality

      • Proactive approach process
      • Reactive approach process

      Capacity

      • Supplier capacity assessment
      • Bottlenecks and constraints

      Delivery

      •  Supplier logistics process

      Stage 3: Supplier foundation building

      Critical suppliers identification
       

      Supplier assessment
       

      Supplier foundation building
       

      Improvement projects implementation

      Objective

      Improving supplier’s capability while setting foundation

      Key activities:

      Process mapping

        

      OEM-supplier KPI mapping

        

      Process standardization

        

      Stage 4: Improve project implementations

      Critical suppliers identification 
       

      Supplier assessment
       

      Base building
       

      Improvement projects implementation

      Objective

      Improving supplier’s capability while setting foundation

      Key activities:

      Project definition

        

      Project execution

        

      Project sustenance

        

      Expected outcomes from SCEP

      Quantitative

      • Lower PPM
      • Lower NPD time
      • First time right of the products/ components at supplier’s place
      • Improved “on time in full quantity”
      • High productivity
      • Lower cost of sourcing

      Qualitative

      Household budget. Young indian female sit at table calculate utility payments before make money transfer in online bank app on laptop. Focused millennial business woman pay taxes plan personal savings
      • Skill-building and problem-solving capability
      • KPIs alignment
      • Standardized processes
      • Prevent product failure through “mistake proofing”
      • Improved data layer maturity
      • Improved supplier satisfaction

      Typical SCEP roadmap

      The duration required for implementing a SCEP programme depends on several factors such as the supplier’s size, product complexity, organisational culture, and current status.

      Typical SCEP roadmap

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