Relationship Model
Additional expectations for our suppliers'-and for Littelfuse-are identified in the Relationship Model that follows. These expectations increase as the relationship evolves from one of vendor, to supplier, through partner and on to the highest level: alliance.
Supplier/Littelfuse Relationship Model
Expectations
At the vendor level in the relationship, our expectations focus on quality, delivery and cost.
Our expectations increase for the supplier category. At this level, they include maintaining moderate inventories, providing sales support and offering competitive products.
At the partner level, we start integrating the supplier into the product development process. We share information and resources, provide forecast information and expect our partners to meet a higher standard for quality, delivery, inventory, service and similar attributes than at lower levels in the model.
At the alliance level in our relationship, both the supplier and Littelfuse contribute equally to the relationship. We select our alliance partners carefully, based on the supplier's ability to meet expectations and contribute to a mutually beneficial relationship founded upon interdependence, trust and communication. This level of relationship requires a commitment that starts with top management and moves down through the organization.
Benefits
The benefits associated with reaching either "partner" or "alliance" status are significant. We consider these suppliers to be external employees. We provide them with growth opportunities and with access to resources-both internal and external to Littelfuse-that are not available to other suppliers. An open door policy, first look/last look, reserved conference rooms and shared marketing are a few examples. Additionally, we make recommendations to other divisions, through our cross-division councils that may open up new business opportunities for the supplier.
In order to provide the internal support needed to ensure that these expectations are met, Littelfuse has developed a structure we call our "House of Quality". This structure defines the foundational elements, the process and the methodology followed to:
Supplier/Littelfuse Relationship Model
Expectations
At the vendor level in the relationship, our expectations focus on quality, delivery and cost.
Our expectations increase for the supplier category. At this level, they include maintaining moderate inventories, providing sales support and offering competitive products.
At the partner level, we start integrating the supplier into the product development process. We share information and resources, provide forecast information and expect our partners to meet a higher standard for quality, delivery, inventory, service and similar attributes than at lower levels in the model.
At the alliance level in our relationship, both the supplier and Littelfuse contribute equally to the relationship. We select our alliance partners carefully, based on the supplier's ability to meet expectations and contribute to a mutually beneficial relationship founded upon interdependence, trust and communication. This level of relationship requires a commitment that starts with top management and moves down through the organization.
Benefits
The benefits associated with reaching either "partner" or "alliance" status are significant. We consider these suppliers to be external employees. We provide them with growth opportunities and with access to resources-both internal and external to Littelfuse-that are not available to other suppliers. An open door policy, first look/last look, reserved conference rooms and shared marketing are a few examples. Additionally, we make recommendations to other divisions, through our cross-division councils that may open up new business opportunities for the supplier.
In order to provide the internal support needed to ensure that these expectations are met, Littelfuse has developed a structure we call our "House of Quality". This structure defines the foundational elements, the process and the methodology followed to:
- Develop, support and manage our suppliers
- Understand and respond to our customers' voice
- Achieve our end goal: Total Customer Satisfaction!
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