Background
Philips is a global player in the lighting sector. Its objective was to identify world class suppliers for the following 8 technology categories: LED luminary, Waterproof, Die-casting, Down light, Decorative lighting, Metal parts, Floor lighting, Table light. Philips had already drawn up a list of 150 potential suppliers in China and needed expert support to select the 2-4 most capable suppliers for each of the segments.
Approach
- Created a multi-functional team with representatives from each category / segment in order to understand specifications and requirements
- Developed a list of potential suppliers by combining already identified suppliers (150) with new external suppliers (ended up with a list of 850 suppliers)
- Developed jointly with Philips an RFI (Request for Information) customized per category
- Administered the RFI process with the 850 suppliers
- Analyzed RFI responses and ranked suppliers per category
- Developed jointly with Philips final supplier selection template to be used during supplier visits and audits
Results
Demonstrated value of implementing a rigorous and analytical supplier screening process vs. adopting opportunistic approach
Challenged current approach in screening suppliers. All answers were screened through “rejection”, “must have” and “nice to have” criteria defined jointly with client
Process allowed Philips to audit and select high quality suppliers in all categories in the scope of the project