Total Quality Management in Purchasing

The ever-increasing competitiveness in the marketplace requires from manufacturers continuous improvements of business processes and reduction of costs in all areas. A company can achieve great earnings on the account of its suppliers in the short term; however, the so-called win-lose strategies have slim chances of success in the long term.

We at Iskra Avtoelektrika d.d. believe that effective management of purchase costs depends upon the strength of supply chains and upon our cooperation with our suppliers in the following areas:

• Identification of cost and costs inducers in supply chains,
• Measurement of these costs,
• Careful management of these costs.

In order to achieve our objectives in the management of costs, we expect the active cooperation of our suppliers in the process of total quality management in purchasing (costs reduction system).

Process of Total Quality Management

The process of total quality management in purchasing is the upgrading of our activities up to now. We would like to involve our suppliers more directly in the reduction of purchase costs.

Total quality management in purchasing combines the education and development of suppliers through systematic assessment of suppliers and promotion of suppliers' innovations as a generator of cost reduction.

The process makes it possible to reduce the unnecessary costs and improves mutual communication between the supplier and the customer in order to increase competitiveness in the supply chain and to generate higher added value at Iskra Avtoelektrika d.d. as well as for the suppliers.