Procurement and Logistics

Supplier Qualification & Management

A supply chain is only as effective as its weakest link. Supplier selection and management is therefore a critically important activity that impacts business performance. Customers can be assured that SerCom Solutions enforces a stringent supplier selection and approval process. We also provide ongoing day-to-day supplier management and quality assurance (QA) by locating our highly qualified and experienced personnel close to the source of supply.

Potential suppliers are initially assessed based on cost, capability, and response to a detailed questionnaire. They will then be visited by local SerCom personnel, who evaluate the company's quality, manufacturing and commercial capabilities. We put significant emphasis on a company's investment levels and R&D capability, wherever appropriate.

Performance and reliability testing are key requirements for specific components and products. Some of SerCom's clients require us to provide this service due to our experience at managing this process and our success at gaining regulatory approval for a wide range of products. In general, we conduct pilot programmes for all new suppliers and components prior to qualification. Initial shipments of products and components are inspected at source to ensure any issues are found and dealt with quickly and without impact to our customers. In some instances we work collaboratively with our customers who may provide specific part and supplier approvals.

While excellent quality is a given for any SerCom supplier, so too is flexibility and responsiveness. Suppliers must have the ability to quickly ramp up or ramp down their capacity. Data is the driver of any supply chain and new suppliers are supported with dynamic reports so they can respond to changing demand. Many suppliers connect directly to our mySAP ERP system. Reliability is paramount for both SerCom and our customers. Our suppliers are therefore expected (and closely managed) to honour their commitments and deadlines.

The purpose of our supplier management process is to align and strengthen business relationships with our suppliers, improve performance and reduce costs. Supplier performance, from a quality and delivery perspective, is monitored closely and any issues are dealt with on real time basis. Monthly metrics are reviewed with suppliers along with action plans for improvement. We carefully monitor supplier costs and actively work cost reduction plans. Performance issues are quickly identified and urgently addressed. Our detailed QBRs (Quarterly Business Reviews) rate key suppliers in three main areas: quality, continuity of supply and cost. Continuous improvement is a way of life for SerCom and our suppliers.

SerCom's customers can be assured of an excellent, metric-driven management system for their second tier suppliers. Tactical execution is successfully managed by our own supply chain function with strong local resources close to source of supply. SerCom also drives strategic initiatives such as cost analysis, capacity reviews and long-term capabilities/technologies.