Business Requirements
Procurement
VISION: Deliver lowest total cost across Alticor's global expenditure.
MISSION: Create competitive advantage and improve profitability through people, processes, and Strategic Sourcing.
Strategic Sourcing
Strategic Sourcing is a discipline embedded within Amway and founded on the concept of lowest total cost sourcing.
This discipline is:
- Systematic – Amway has specific tools, processes, programs and a defined infrastructure to ensure we obtain the greatest value for our expenditures.
- Aggressive – Amway holds our sourcing teams and suppliers jointly accountable for success.
- Cross-functional – Amway gathers individuals from functional areas within the supply chain to review, recommend and implement comprehensive sourcing strategies.
It is important to note that Amway views our suppliers not merely as an “extension” but an integral link within our supply chain. Having our suppliers clearly aligned and integrated with Amway's business strategies and objectives will create on-going, mutual success.
Sourcing Strategy Teams
Sourcing Strategy Teams direct the sourcing activities for specific categories taking a global, category focused approach to procurement and driving toward lowest total cost in partnership with the supply base. Each cross-functional team considers, recommends and implements new sourcing strategies and supply management components that will optimize the supply base and drive global sourcing activities for the Alticor enterprise.
Sourcing Management
Amway aggressively manages sourcing activities to maximize the value received for our annual expenditures. Focus is not only on price but also: quality, available capacity, and service, access to technology, logistics, regulatory issues, and replenishment lead times, when making sourcing decisions. By analyzing our categories of expenditures, deploying cross functional teams to develop strategies, effectively sourcing and executing against the strategy, we are focusing our resources to achieve lowest total supply chain cost.
All Suppliers should be familiar with the following topics to assist us in our goals of lowest total cost and continuous supply chain improvement.
Purchase Orders
The Purchase Order is the primary authorized legal document for the procurement of goods and services from an outside source. The terms and conditions are printed on the back of the Purchase Order.
Amway's preferred Purchase Order Transaction Process is EDI; however, other options are available to the supply base, including e-mail, fax, and ordinary mail. Although these are not integrated with our systems and must be manually handled, they are provided so that suppliers with technical limitations have a process for transactional completion. Each of these options uses a hard copy purchase order which is sent to the supply base via the various transmittal options. The expectation is that suppliers will receive, review, and acknowledge the acceptance of the purchase order. Any changes to the order are also sent via these options or are called into the supplier by the Amway planner or buying assistant.
Order acknowledgement and change order confirmation should be received at Amway via phone, fax or email within 24 hours of order placement.
Proposals/Quotes
All quotes for specified raw materials, packaging components, and services must have a complete breakdown of all cost elements, including labor, overhead, margin, raw materials, and components. Amway will require this for all initial evaluations as well as the ongoing establishment of goals and validation of price adjustments. Suppliers who do not provide this information may be disqualified from consideration.
Vendor Managed Inventory (VMI) / Consignment
Suppliers are encouraged to work closely with Amway to minimize inventory and increase inventory turns in a way that is mutually advantageous. Opportunities such for Consignment and VMI are available. Please contact your Amway Buyer for more information.
eSourcing
Amway has adopted an internet-based approach to managing our sourcing functions. Frictionless Commerce is an eSourcing technology allows suppliers to electronically submit and update information and provides for direct integration of supplier-based data with our eSourcing processes (RFI, RFP, Auctions, etc.) at no cost to the supplier. The synergy created by using Frictionless Commerce for supplier registration, along with other eSourcing functions, will improve efficiency within our supply chain and for our suppliers in the following ways:
- Privacy – Information is securely stored for Amway use only.
- Easy Access – Information can be accessed and updated easily via the internet.
- Efficiency – Frictionless technology is used to respond to RFIs, RFPs and participate in eAuctions.
- Data Storage Capability – Important data and documents can be scanned and uploaded, including insurance information, certifications, and safety information.
- Visibility – Amway commodity categories can be selected by suppliers and used as search criteria by ABG buyers in the sourcing process.
Publicity
Use of Amway/ABG/Alticor name is prohibited without prior written approval. Please contact the Amway Buyer with questions.
Supplier Visits
Appointments are required. Please contact the Amway Buyer to schedule a visit.
Gifts and Gratuities
The Strategic Procurement Buying staff should not accept any gifts, gratuities, or favors from any supplier, broker, agent or others in the buyer/supplier relationship.