The paper "Early Engagement of Suppliers or Contractors" is a good example of a research paper on business. The aim of this paper is to describe the challenges that face the early engagement of suppliers and how these problems can be avoided. In the present world, organizations are experiencing pressure to come up with creative customer solutions due to the increasingly stiff competition they are facing. This pressure forces the organizations to speed up their technical developments, reduce lead times and response time, and minimize the life cycle of products. Early engagement of the suppliers is an advantage to the organizations in a competitive environment.
This will also improve the success of the development and design processes. (Gianluca, 2007). Suppliers should be competent enough so that time and cost are saved in the process of development. Therefore, there is a need to rely on the expertise of suppliers in the sectors of materials and component suitability. ( Turner, J.R 2005). Early supplier engagement ESE importance is realized if it is applied in the early stages of concept development. This is because an organizational ability to maintain its competitive capabilities largely depends on the cost, timing, quality, and amount of materials and the supply efficiency sequence. The early engagement of suppliers begins with the identification of the client’ s needs and goals.
This way, the customer can estimate the cost anticipated for the design course and also share technical information and develop a program required. The benefit of ESE is that it promotes component design and this, in turn, improves the manufacturing process in general. It also encourages short time development by reducing iterations and engineering changes. The early supplier engagement assists in developing and maintaining mutual benefits in terms of the innovations, collaborations, and even trust between two organizations.
This is the best way of handling competition issues. Introduction Industries and firms are facing high levels of competition globally. The markets in which they are operating are also demanding creativity in terms of innovations and high-quality products. Early engagement of suppliers is used by many companies as an approach for competitive advantage. This engagement is applied in the early stages of product design. (Handfield et. al 1999). The engagement is also faced with challenges such as cases of accusations of favouritisms from the suppliers who are unsuccessful.
Some companies also stick to a certain solution so early. These problems and others can be avoided if appropriate measures are applied. This paper describes the main steps on how to avoid these issues by examining key successful areas. Literature Review Early engagement of suppliers is a process that enables managers to communicate the needs of the organizations to the suppliers and come up with possible solutions to the problems. The engagement also helps the managers to understand the market structure and developed strategy design for delivery and innovation of products.
Good engagement enables the procurement leaders to gain more trust and reliability of suppliers making them become good customers. It is also helpful in developing an improved procurement plan. ( Fraser et. al, 2003). There are two categories of engagement. The first one is where a supplier engages commercially in order to assist in the preparation of what could be considered of more importance. A good example of this kind of engagement is involving a consultant firm to offer advises on the main procurement exercise.
The other form of engagement is when a contracting authority decides to assist more than one organization in researching products or markets, to ensure that procurements are structured properly or give way forward. In this kind of engagement, the contractors want to obtain market ideas and are not paid; this is not a commercial engagement like the other one. The problem with this method of engagement is that the companies which do not benefit from the engagement will complain to others who received it.
They may even term this as discrimination.
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