Basic conditions for long-term partnership
Our success on markets around the world and our customer satisfaction depend to a large extent on the upstream services provided by our global suppliers.
Efficient processes working with suppliers are key to achieving optimum efficiency and quality in the supply chain right through to our customers.
We attach great importance to openly sharing information and a willingness to work closely with our partners.
As a basic prerequisite for a long-term supply relationship, we expect uninterrupted and flexible supplies of a consistently high standard at competitive prices.
We also expect:
Cost transparency – establishing target prices – production concepts
The target prices that we calculate based on optimum construction, production, logistics, quality and management structures constitute an important pricing tool. These calculations are not in any way based on existing structures (target costing). As well as cost-effective construction and production concepts, the optimum structures also include suitable machinery and processes and the basic principles of lean production and total quality management.
The purpose of establishing target purchase prices is to achieve cost transparency. In open dialogue with our suppliers, we wish to eliminate the cost drivers emanating from Rittal and our suppliers and thus achieve optimum cost levels. To do so, our suppliers need to be willing and able to openly discuss existing and possible cost structures as a team and to create new structures. We, in turn, are willing to enter into long-term partnerships with our suppliers.
Our aim is to enable our suppliers to make a profit while charging globally competitive prices.
Sustainable quality – stringent quality planning – continuous quality improvement – long-term reliability
We involve our suppliers at an early stage through partnership and cooperation and by setting target purchase prices. They are therefore able to actively work towards achieving zero-error quality.
To do so, we need top-class suppliers, or suppliers that have the potential to reach this standard. We expect more than just error identification – we expect preventative measures to safeguard quality assurance right from the start of series production. Advance quality planning that includes construction and process FMEAs, test and inspection planning (for FAI tests) and prototype samples is therefore a must for our suppliers. This allows weaknesses to be identified at an early stage.
We aim to continuously improve the quality of work. This plays an important role in reducing the costs associated with sub-standard services for both suppliers and Rittal.
We are looking to achieve optimum quality in the production chain. With this in mind, we consult our suppliers and coordinate with them to avoid repeat tests.
Quality assurance agreements thus eliminate the need for incoming goods inspections at Rittal.
The high reliability and error-free delivery of our suppliers enable us to reduce stock across the entire logistics chain and introduce new logistics concepts.
Early supplier involvement – simultaneous engineering – development team – project management – cost management
Through simultaneous engineering, we involve our suppliers in the development of our products from as early as the conception stage. The purpose of early supplier involvement is to work together as a team to develop products, thus maximising capacities and preventing work from being duplicated.
Our suppliers are part of our development team – they provide their expert knowledge and are involved in detailed design and sample development right through to the pilot run. In return, we share our experience in system integration and field usage. By entering into long-term agreements, we aim to ensure that our development suppliers are also involved in series production, thus ensuring a comprehensive exchange of know-how.
This new approach to cooperation in development requires the consistent use of single sourcing. We plan to define the “strategic suppliers” we want to work with to shape the future for our parts groups. Our assessment will not only take into account cost, but also performance in the areas of quality, development, logistics and innovation. We are looking to enter into partnerships based on mutual accountability, openness and honesty.
Through early supplier involvement, we are looking to help cut development times and significantly reduce material costs. To achieve this, we need the right supplier structures. Our supply partners must be able to offer us more cost-efficient developments with process procedures and tolerances. Together we want to create the basis for optimum cost structures with a view to achieving the target prices specified by our customers.
Optimisation of stock levels – flow of goods – flow of information
Rittal’s production structures require increased flexibility in our suppliers’ production processes and purchasing logistics. We are looking to optimise our production supply procedures using just-in-time delivery of parts by suppliers or vendor-managed inventory with parallel minimisation of stock levels across the entire supply chain.
The detailed and rapid reconciliation of our customer orders with Rittal stocks and our suppliers’ production logistics provides the basis for this. Using this reconciliation and supported by our weekly supplier orders with a wide-reaching planning horizon, we aim to help our suppliers use their flexible production structures to further optimise batch sizes, and thus reduce stock levels.
On an organisation level, we want to use short decision-making paths between the supplier and Rittal to enable better planning of orders with regard to quantities and delivery dates and to reduce administrative outlay for both sides.
Optimum conditions are offered by suppliers that…
- have experience of process-oriented cooperation to DIN EN ISO 9000
- have certification to DIN EN-ISO, VDA or ISOTS
- accept our General Conditions of Purchase and the Quality Assurance Agreement
- constantly strive to optimise their own processes
- can offer technically sound and competitive services
- would welcome possible involvement in development processes
- can bring to the table their own technical expertise in terms of production and products
- are willing to become actively involved in the development of cost-effective solutions for production
- show a passion for innovation
- reliably meet delivery deadlines and comply with contract plans / comply with delivery and contract requirements
- can meet deadlines and show flexibility in responding to our needs
- can offer competitive services at globally competitive terms
- consider our customers to be their customers
- are willing to sign supply contracts and confidentiality agreements
- are willing to continuously review and optimise the quality of communication and logistical cooperation
- are interested in a long-term trusting partnership and willing to support/advise us as a partner
- are environmentally aware and offer eco-friendly solutions