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MUL’s inputs primarily comprise raw materials and purchased components. In order to improve quality and generate economies of scale, MUL has reduced the number of vendors of components in India from 370 as of March 31, 2000 to about 100 as in 2005. By lowering the time and cost involved in dealing with more vendors, they have increased their supply chain efficiencies In case of repair and replacements, costs of defective components supplied are borne by the vendor
o Quality aspect - Periodic vendor quality system audits are conduct in order to ensure that quality standards are sustained. Vendor Quality Control Quality management system such as ISO 9000/ QS 9000 forms the basis for producing a quality product...
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