Introduction to Health and Safety at Work

particularly true of the automotive and aircraft industries. 
This is good practice as it:
➤
involves the supplier in the design process
➤
reduces the number of items being managed within 
the business
➤
reduces the number of suppliers
➤
improves quality management by placing the onus 
on suppliers to deliver fully checked and tested 
components and systems.
In retail, suppliers are even given access to daily sales 
and forecasts of demand which would normally be con-
sidered as highly confi dential information. In the process, 
the freedom of local operating managers to pick and 
choose suppliers is reduced. Even though the respon-
sibility to do so is often retained, it is strongly qualifi ed 
by centrally imposed rules and lists, and assistance or 
oversight.
Suppliers have to be:
➤
trusted
➤
treated with fairness in a partnership
➤
given full information to meet the demands being 
placed on them.
In these conditions, suppliers and contractors looking 
for business with major fi rms need greater fl exibility and 
wider competence than previously. This often implies 
increased size and perhaps mergers, though in principle 
bids could be, and perhaps are, made by loose partner-
ships of smaller fi rms organized to secure such business.
3.9.2
Advantages of good supply chain 
management
(a) 
Reduction of waste
This is an important objective of any business and 
involves not only waste of materials but also time-related 
waste. Examples of waste are:
➤
unwanted materials due to over ordering, damage or 
incorrect specifi cations
➤
extraneous activities like double handling, for example 
between manufacturer, builders merchant and the 
site
➤
re-working re-fi tting due to poor quality, design, 
storage or manufacture
➤
time waste such as waiting for supplies due to 
excessive time from ordering to delivery or early 
delivery long before they are needed.
(b) 
Faster reaction
A well managed supply chain should be able to respond 
rapidly to changing requirements. Winter conditions 
require very different materials than during warmer or 
drier seasons. A contractor may have to modify plans 
rapidly and suppliers may need to ramp up or change 
production at short notice.
Supplies work,
information, car,
limits on cost
Supplies job
sheet, car
Supplies invoice
keys, car, report
Supplies car, keys,
information on work
done and problems
Supplies parts
as requested
Supplies request
for parts and
consumables