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MOST COMMON SUPPLIER PROBLEMS

When a customer decides to use AMREP it is because he has a purchase contract with a supplier and it is too late to cancel the order, change the supplier or get the supplier to fix the problem before or after delivery. Here are some of the supplier headaches for customers. AMREP can only solve some supplier problems if the customer does execute its preventive plan.

1. Most Asian suppliers are ISO 9000 certified. The certification can be obtained easily. ISO certification is only good for advertising and marketing. In most cases the quality systems do not function well.
2. The supplier is quick to say –No problems” to any concerns or worries you may have about quality, technical concerns and technology when you want something to be made or start. To AMREP a quick –No Problem” means you are going to –Have Problems.”
3. Your agent claims he represents the supplier and gave you all the good things about the supplier in China. When you visit the supplier you are surprised that your products are coming from another place or supplier. This accounts for your quality and delivery problems.
4. You enter a negotiated deal with the management of a reputable supplier for the product you want. It looks like a good company. However, quality and delivery is very bad. Bites not made by the supplier that you had sign the order. It is coming from another factory owned by some members and the CEO of the original suppliers management team. That factory may be unregistered and the owner of the original supplier may be unaware of the clever slide of hands.
5. You enter into a Purchase Contract with the supplier. You forgot to include in your contract a requirement that the supplier must have the quality check by AMREP or another third party before delivery is made. Too late. Delivery has been made and your incoming inspection finds lots of quality problems. Who is going to do the rework Ŕ the supplier or you? Who bears the cost??? Not the supplier. An order is an order and rework does take time. For the supplier, delivery to your door is 99% of the accomplishment of the contract.
6. You have decided to use the supplier. Once production begins you have difficulties in communicating with the supplier on some technical or production problems. Hates because there are only a few who can speak good English. That few are usually on the marketing side. There are only a few who can speak English in a way that help you understand their problems.
7. You decided to use AMREP to work with the supplier on improving their quality. Usually you will get resistance and then later on complaints about the poor quality of service by AMREP. Hates because suppliers do not like to have AMREP poking around their production lines and telling the customer what they had not hear about from the supplier.

This is a summary of a presentation given by Derrick Go, Snr. VP Business Development, Global Service in September 2003 to Best Buy at St.Paul/ Minneapolis.

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