This section explains how a potential supplier can become a competent supplier for RAKSEV through an illustration of our purchasing procedures in contrast with our typical product development process.
( Click on numbers 1 ~ 16 for a detailed explanation )
[1] Product Development Process
In general, the development cycle for a new product takes
about 4 to12 months and follows the process illustrated in the
above chart. However, during this term a wide range of minor
changes are carried out, so suppliers can contact us any time
without limiting to special period.
[2] Purchasing Procedure
RAKSEV's basic purchasing procedure is undertaken in line with
the following items and is linked with each step of the product
development process.
(1) Initial contact
A potential supplier applies to the relevant RAKSEV Purchasing
Division according to the product category.
(2) Presentation
RAKSEV and a potential supplier exchange information concerning
their corporate outlines, product handling, etc, and then RAKSEV asks questions on important related matters. On this occasion,
the supplier is requested to make an effective presentation by
providing an account of the company and the superiority of its
products with the aid of corporate brochures, product catalogs,
samples, etc.
(3) Supplier
information registration
RAKSEV prefers continuous relationships with its suppliers to
one-off or temporary business. With this aim in mind, we attempt
to compile versatile information on our potential suppliers that
will make it easier for us to approach them with orders for new
business.
(4)
Presentation of information on purchase items and
request for estimate
When a required purchase item satisfies conditions of both
parties, RAKSEV requests the supplier to present an estimate of
its cost. At this time we provide the supplier with variety of
information including detailed specifications and technical
drawings, purchase quantity and required price (In principle, RAKSEV obtains estimates from several suppliers before making
decision to purchase).
(5) Provision
of estimate and delivery specifications/conditions
The supplier is expected to present an estimate along with the
specifications of the trial production item. Also, supplier
requests regarding delivery specifications and conditions should
be presented at this time.
(6) Evaluation
for move to prototype and testing
We judge whether prototype should be made or not after overall
review of price, quality, supplier's technical capabilities and
its results in the field.
(7).(8).(9)
Trial production and its evaluation
We ask the supplier to make prototype. Also, depending on the
type of product, we may request the supplier to provide test
data. At RAKSEV, we carry out test evaluations of prototype and
inform the supplier of our results.
(10)
Finalization of specifications for mass production and
request for pilot products and re-estimate of the cost
We finalize specifications for mass production based on the
results of prototype. Then, we request pilot products for the
preparation of mass production and re-estimate of its cost for
final specifications.
(11).(12)
Fabrication of pilot products and their evaluation
Evaluation of final specifications will be conducted with pilot
products of which specifications are equivalent to those of mass
production. Then, if necessary, we ask the supplier for
permission to visit and view the manufacturing process.
(13) Making
contract
Once we decide to use the product, we arrange the details of the
contract conditions.
(14)
Insurance of order sheets
We place orders based on the delivery conditions agreed in
advance with the supplier, using a standard order sheet.
(15) Mass
production of ordered products
The supplier prepares for the production and delivery of the
ordered products in accordance with the order sheet.
(16)
Shipment of products
The supplier ships products according to order sheets.
