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ESI is an approach in supply management to bring the expertise and collaborative synergy of
suppliers into the design process. ESI seeks to find “win – win” opportunities in developing
alternatives and improvements to materials, services, technology, specifications and tolerances, standards, order quantities and lead time, processes, packaging, transportation, redesigns, assembly changes, design cycle time, and inventory reductions. Today, early supplier involvement (ESI) is an important accepted way of life at many proactive firms and a requirement for world class supply management.
The suppliers are carefully prequalified to ensure that they possess both the desired technology and the right management capability. The technological benefits of early supplier involvement can be obtained, with due consideration to the commercial aspects of the relationship – i.e. mutual benefits. ESI helps in developing trust and communication between suppliers between suppliers and the buying firm. ESI normally, but not always, results in the selection process of a single source of supply. At most progressive companies, this selection process is the result of intensive competition between two or three carefully prequalified potential suppliers. The company selected becomes the single or primary source of supply for the life of the item using the material.
ESI is critical in reducing the cost of production, improving quality and preventing costly delays.
Titany answered the question on November 25, 2021 at 05:50
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