The steps in the Purchasing Process
Supplier panel management
Supplier onboarding process:
- Selection stages,
- Assessment
- Onboarding.
During the selection and evaluation stages, AKWEL conducts three assessments:
- Supplier self-assessment (EVAL),
- VDA 6.3 audit
- Corporate social responsibility assessment by a third-party firm.
If successful, the potential supplier is authorized to join the panel.
The supplier is added to the panel following an internal approval process.
RFQ Management
To respond to a request for proposals, the supplier must submit a quote and a commitment to the technical specifications. The supplier will be selected by an internal committee. The supplier will then receive a letter of appointment and the guidelines for conducting the APQP process, followed by a purchase order.
Supplier performance management
The Scorecard is used to track KPIs (key performance indicators). Each quarter, AKWEL shares the Scorecards with strategic suppliers and requests action plans if targets are not met.
Key performance indicators (KPIs):
- Quality and logistics incidents;
- PPM;
- IPB;
- 8D progress rate;
- Delivery rate;
- Escalation management.
Every six months, AKWEL ranks suppliers and identifies those whose performance needs improvement.
Management of underperforming suppliers
At the end of each year, AKWEL identifies the list of suppliers whose performance needs improvement. They will be subject to a special performance improvement and monitoring program for the following year. Monthly meetings will be held with these suppliers to establish action and progress plans.
Annual performance review
Each year, AKWEL conducts a performance review of strategic suppliers based on the previous year’s results.