Preferred Supplier Criteria
Benkay works with all of its divisions to create a high-performance team of global suppliers. Through these relationships, we forge strategic, long-term relationships with a select group of suppliers to consolidate our entire range of procurement and materials management activities.
We are a progressive global organization and require our suppliers to share our vision. We do business with suppliers that subscribe to our philosophy of continual delivery, quality and productivity improvements. We require suppliers to collaborate with us on innovative products and to remain cost competitive on current products to help ensure we enjoy a marketplace advantage in providing goods and services to our customers. This direction permits our growth and allows us to reward our supplier base with opportunities to grow their businesses.
Preferred suppliers are selected based on key criteria: quality, cost, flexibility, delivery, service and innovation. We understand our suppliers’ core competencies, the commercial and technical complexities of their businesses, and how they relate to our objectives. We build strong relationships with suppliers based on mutual interest and common values.
Benkay believes in a diverse supply base, and encourages suppliers who fit those criteria to make their status known.
What we require of our suppliers:
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Quality
Our goal is 4R quality as Right Quality, Right Product, Right Price, Right Source . We expect relentless support and focus on product quality from our suppliers. Our sourcing and quality teams will work with your company to drive root-cause analysis and corrective-action processes.
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Payment Terms
All suppliers to any customer line of Benkay Sourcing will be expected to adhere to specific payment terms as a baseline condition for doing business. Individual buyer groups will occasionally seek more aggressive terms or terms more appropriate to their buyings. Terms extended to one group will be assumed to apply to all groups that do business with your company.
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Lead Time
Supplier lead time is measured as the number of days between order release and the receipt of goods at the port of arrival. Lead time does include the supplier’s manufacturing time, in addition to the transit time to our facilities. Supplier-owned inventory within or near our distribution centers is considered to be a strategic advantage for suppliers.
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Service Level
Minimum-delivery performance of 95 percent is consistently required. On-time delivery is a window of plus (+) 5 days, minus (-) 5 days of an actual purchase order scheduled due date and is measured by actual date of receipt at the final destination.
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Productivity
Annual productivity through continuous improvement is the cornerstone of our strategic vision and requires a commitment from you to ensure this is achieved. Understanding and subscribing to this year-over-year productivity philosophy is required. This objective requires creative input from suppliers to our marketing, engineering and purchasing teams to help reduce costs on current products. Benkay has made significant internal productivity improvements through our management program, which utilizes the tools and concepts of 4R.
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Price Adjustments
We expect our suppliers to adhere to their contractual commitments. The need for surcharges, adjustments or raw materials flexibility must be negotiated in advance and agreed to by both parties. From time to time, however, reductions in price are expected to meet competitive situations, and adjustments may be necessary for unanticipated global commodity shortages or market impact. Any request for price increases requires substantiating documentation, Benkay approval, and must be requested 30 days in advance of the effective date on new orders. This allows Benkay time to discuss a potential price increase with our customers, time to consider alternate designs or materials to prevent the price adjustment, or time to source elsewhere.
If you subscribe to the key sourcing strategies above and will promote our philosophy of continual quality and productivity improvement, we welcome you to discuss opportunities to provide your products or services through us.