son that can be reached at any time to discuss current or potential issues that could result in a line shutdown. In addition, if acceptable DPPM levels are exceeded, the supplier must agree to replace them within 24 hours at no charge.Timeliness of Deliveries - Suppliers must have the capability to send all deliveries by the date specified. Not only do deliveries have to be on time, they cannot be more than two days early. Early deliveries inflate warehousing costs. Lead-time - Depending on the specific component, lead-times should fall between two and four weeks. If promised lead-times go beyond this timeframe, IBM will not be able to effectively work with the supplier.Technological CapabilitiesTechnological capabilities are comprised of the supplier’s ability to smoothly and efficiently incorporate IBM’s technology on their production lines. While an important factor, this criterion has the least emphasis because IBM expects there to be some sort of training involved with the suppliers. It is not uncommon for IBM to send an engineer to a supplier’s plant for weeks at a time to help the supplier set up a line and oversee initial production (Demas, 7). Decision Making ProfileWho Needs/MotivationPower/InfluenceTechnical KnowledgeCommunication StyleCommodity Manager - Price most important - Performance reviews based on the savings that can be secured from suppliers - Makes final sourcing decision - Ranges from low or high. Some CMs have extensive engineering backgrounds - Tends to be Director style (M&R, 272) - Determined to get the highest quality at the lowest priceCommodity Engineer - Same needs and motivations as the commodity managers - Limited power and influence - Provides technical support for the commodity manager - High - Tends to be Reflective style (M&R, 273) - Scientific in evaluating suppliersBuyer - Need strong commitment from supplier to be available for communication at all times- Locates pote...
