OEM Tips: Top 10 Questions for Vetting New Suppliers

21 Oct.,2024

 

OEM Tips: Top 10 Questions for Vetting New Suppliers

OEM Tips: Top 10 Questions for Vetting New Suppliers

Check now

Choosing a pump supplier for your OEM project can be a daunting process. Given the high cost of making the wrong decision, it&#;s essential that OEMs use a detailed process to screen and compare candidates in order to select the ideal supplier/partner.

Using our list of top 10 questions for vetting new suppliers, this article is intended to provide a basic framework for OEMs to identify and assess pump suppliers that best fit your needs and requirements.

Key Takeaways:

  • Focus on suppliers that can add skills and expertise that you don&#;t have
  • Focus on suppliers with in-house engineering and manufacturing capabilities
  • Focus on suppliers that are flexible, cost-focused, and understand the importance of time-to-market
  • Look for suppliers with a proven track record in your product category

1. What type of OEM experience do you have?

With decades of experience, Beckett has a wide range of core pump technologies and works with a broad range of OEM applications, including specialty HVAC/R equipment, computer room air conditioning equipment (CRAC), commercial and residential refrigeration equipment, commercial and residential ice machines, tile and masonry saws, parts washers, oil skimmers, hydroponics equipment, evaporative cooling equipment, and others.

2. What is your experience with addressing cost and quality challenges?

Since its founding in , Beckett has built a seasoned engineering team to help OEM customers address cost and quality challenges during the product development process. Customers see the most value by engaging Beckett early in the product development process to explore key factors that can impact cost, improve quality and shorten the time-to-market window.

Beckett has achieved ISO : certification, meaning we are a manufacturing organization that has demonstrated the following:

  • Follows the guidelines of the ISO standard
  • Fulfills its own requirements
  • Meets customer requirements and statutory and regulatory requirements
  • Maintains documentation

3. What is the scope of your pump product offering?

Beckett offers a broad range of fractional horsepower centrifugal pumps, including stock, semi-custom, and custom pumps. Beckett also offers a limited range of piston and diaphragm pumps. These pumps include a wide range of submersible pumps, bottom intake pumps, and a variety of small, medium, and large condensate pumps (i.e. high-temperature, low-profile, plenum rated, and more). Typically, the top factors that drive the pump selection process for OEMs are 1) application suitability, 2) performance criteria, and 3) price point specified by the OEM.

4. Beyond pumps, can you help with controls, sensors, or other integrations?

Compared to other suppliers, Beckett&#;s broad range of stock, semi-custom and custom pump technologies help keep costs lower and time-to-market shorter. Furthermore, Beckett&#;s experienced in-house engineering team can also assist with control switches, sensors, and integration with other PCB control systems.

5. Do you have an in-house engineering team to assist with our project?

Beckett&#;s experienced in-house engineering and manufacturing team can help expedite many aspects of your project: design, prototyping, testing, tooling, sourcing, production, and inventory to meet your requirements and speed-to-market window. In many cases, we are engaged early in the development process because of the additional value we can provide.

6. Do you manufacture your own pumps or outsource production?

Beckett manufactures the majority of their products and only outsources certain components. This approach ensures OEMs a more reliable supply chain, lower tooling costs, faster cycle times, greater quality control, and greater overall flexibility to meet your needs.

7. If needed, can you assist with custom tooling for our project?

In some cases, custom tooling is required for OEM projects, which can sometimes add big costs and significant delays. Because of our extensive in-house engineering and manufacturing capabilities, Beckett offers more affordable custom tooling and shorter lead times to help keep costs down and avoid extended delays.

8. Do you offer any type of reliability or performance testing?

Absolutely. Beckett offers an extensive range of testing capabilities as part of our product development process for OEMs. This includes performance, reliability, and life testing, as well as others based on OEM needs and requirements.

9. How does your approach improve or hinder the project&#;s overall speed-to-market?

Beckett understands the need for speed and flexibility. Our in-house capabilities shorten cycle times and lead times to give our OEM customers another advantage when it comes to speed-to-market.

10. Do you have experience with UL, CSA, and other safety regulatory agencies?

Practically all Beckett stock pumps are UL and/or CSA listed. We have extensive experience working with various national and international agencies to get products listed/approved (UL, CSA, CE, TUV, NOM, NSF and others).

Other Resources

Final Thoughts and Next Steps

In addition to the top 10 questions listed above, OEMs should also understand a supplier&#;s position and experience with protecting your intellectual property. Beckett has extensive experience working with OEMs and the confidential nature of these projects. In most cases, NDAs and confidentiality agreements are in place to protect the interests of both our OEM customers and Beckett.

To learn about Beckett&#;s OEM pumps and capabilities, please contact Allen Jerkins, National Sales Manager &#; OEM, or call 866-466-.

What Suppliers Look for from OEMs

The modern gift idea for a 20th-anniversary present is platinum, which is relevant in the context of the auto industry given the proliferation of models that are &#;Platinum&#; editions across OEMs. (The traditional gift idea is also germane, but a road we won&#;t go down at this time: China.)

The 20th annual North American Automotive OEM-Supplier Working Relations Index (WRI), has been released by Plante Moran, and odds are that with two exceptions&#;one in particular&#;there is not a whole lot of cause for celebration among the OEMs.

To greatly simplify what is a massive undertaking, the WRI measures how Tier 1 suppliers think about their OEM customers. What the relationship is like.

Simply: Toyota is far and away the best OEM (of the six measured) to work with.

Toyota has a score of 345 points, which is up nine from , when it also was #1.

In fact, of the last 20 years, there have been just two times when it wasn&#;t in first place. It was eclipsed by Honda both times, in and .

And speaking of Honda, it is otherwise the perennial bridesmaid. This year its score was 310 points, which is actually a non-trivial tumble from the 328 it scored last year.

Still, Honda is well ahead of GM at 269 (down 14), Ford at 264 (up 2), FCA at 198 (up 10), and Nissan at 190 (down 8).

With competitive price and timely delivery, Getell sincerely hope to be your supplier and partner.

How They Get the Numbers

Dave Andrea, principal, Plante Moran Strategy and Automotive & Mobility Consulting Practice, explains that the survey, which was conducted from mid-February to mid-April (catching a bit of the COVID-19 conditions, especially for those suppliers who work with some of these OEMs in Asian and European markets), obtained responses from 841 salespersons from 503 Tier-1 suppliers, representing about 60% of the six OEMs&#; annual buy. What&#;s more, the data is predicated on 2,752 buying situations that are divided into eight major purchasing areas and 20 commodity areas so, Andrea explains, the data is normalized, there is no possibility of &#;sour grapes&#; to affect the results.

Dave Andrea says it is important to look at the trends when discerning how well a particular company is doing on the WRI. (Image: Plante Moran)

Andrea emphasizes that the relations between the OEMs and suppliers is absolutely critical for the simple reason that some 60 to 70% of what makes a vehicle is sourced from suppliers, which means not only does that represent a big spend, but also has a huge impact on the revenue that can be obtained from the end customer (i.e., if the seat is not particularly comfortable but met a target cost, then that probably isn&#;t going to work out so well for the OEM despite the fact that Purchasing met its mandate).

Although this may be taking the wedding metaphor a bit far, it seems as though what makes for a good WRI is what makes for a good marriage: Trust and Communication.

Those are actually two metrics that Andrea and his colleague measured, and there is a direct correlation with how well an OEM did in those two areas with the overall WRI score.

And this isn&#;t something that is just &#;nice&#; to have, because they&#;ve also found that suppliers are more likely to invest in new technology to supply those OEMs they consider trustworthy and communicative.

The WRI looks primarily at Purchasing areas, but Andrea says that one of the things that helps make an OEM a better customer is an organization that is sufficiently cross-functional so that there aren&#;t, in effect, crossed wires when it comes to dealing with the supply base.

This is captured in two areas measured, &#;Engineering Impact on Cost&#; and &#;Purchasing & Engineering Conflicting Objectives.&#; The former goes to the point of the classic late engineering changes, which can end up costing suppliers money in order to accommodate for the necessary modifications.

Crossed Wires

The second is a bit more tricky. In this case, an OEM&#;s Purchasing department and Engineering department may send the supplier mixed messages. This makes it all the more difficult for the supplier to make a determination of what direction to take.

So for that category, a lower number is better, and the company that has the lowest number is&#;not surprisingly&#;Toyota, which comes in a 2.74 in .

However, this category is somewhat exemplary of something that Andrea admits is a bit mystifying to him, which is that while Honda is maintaining its position in second place, it is weakening its hold. That is, in its score for &#;Purchasing & Engineering Conflicting Objectives&#; was 2.95. In that number was down to 2.81. Yet in it rose to 3.03, a number which is considered a statically significant change.

The Long View

One of the things that Andrea says is necessary is to consider not just this year&#;s number, but the overall trend that is shown in the WRI numbers. In this case, Toyota&#;s performance from to is remarkably solid: from 296 to 345, or an increase of 49. And GM is actually more improved than Honda: GM is up 18, from 251 to 269, while Honda is up 17, from 293 to 310 (so one really needs to see where both are starting from and presumably improving in the +300 zone compared to the mid-200 zone is probably a bit like dieting&#;it gets tougher as you try to lose those last few pounds). As for Ford, it is -3, which is probably only satisfying to the folks in Dearborn knowing that FCA is down 50 and Nissan is down 66.

Andrea anticipates that the results next year are going to be driven largely by the COVID-19 changes in the industry. &#;There is mutual dependency between the OEMs and the suppliers,&#; Andrea observes.

How much mutual support that exists right now is going to make a huge difference.

While it has always been important for good relations to exist between OEMs and suppliers, Andrea says this is going to become all the more important as there are going to be significant shifts in the bills of materials that go into their vehicles in the not-too-distant future (e.g., more software and electrification, fewer knobs and manifolds). A lot of the work to be done on transforming the vehicle systems is probably going to be done by suppliers&#;existing and new&#;so a bad reputation is not going to work out well for an OEM.

Let&#;s face it: there won&#;t be a whole lot of anniversary gifts given, platinum or otherwise.

Are you interested in learning more about Oem Gift Manufacturer? Contact us today to secure an expert consultation!