The following information is provided to assist suppliers in understanding Sea Ray's procedures, policies, and practices that are designed to lend continuity to our supplier / customer relationships. This brief outline is intended to be a general overview and not a complete summary. The purchasing staff is able to provide additional details as needed.
Product Quality - Sea Ray expects suppliers to furnish quality products that conform to specifications and customer demands on a consistent and ongoing basis. This is of absolute necessity in supporting Sea Ray's position as the quality leader in the marine industry.
Product Delivery - In today's competitive business environment, manufacturers and suppliers must work diligently to streamline the supply chain. Dependable delivery is essential to a mutually beneficial Sea Ray / supplier relationship.
New Products / Technologies - Sea Ray encourages and expects suppliers to introduce new ideas, products and technologies to our business. Through this creativity, Sea Ray is able to offer the consumer a unique and more advanced product relative to our competition. This premise is a foundation of our long-term supplier relationships.
Value Analysis - Our suppliers, both prospective and current, are encouraged to provide direction and input on Sea Ray value analysis opportunities aimed at enhancing our product value. Conversely, we are eager to work with suppliers in value-engineering their products to create mutual benefits. Do not hesitate to present your ideas or ask for assistance in this regard.
Pricing - Sea Ray desires multi-year agreements that provide an assurance of continuous business. Our preferred suppliers are consequently well positioned to develop long-term strategic plans for their business, including R&D, facilities and equipment investments. In exchange for this volume consideration and long-term agreement, we expect our suppliers to commit to stable pricing and annual price reductions over the term of our agreement. When necessary, any proposed price increases are to be presented for review 60 days prior to the effective date of change. Of course, any price increase must be substantiated and "earned" through performance during the preceding period.
Warranty - Sea Ray warrants its products for a minimum of one year from date of sale to the consumer, with an emphasis on ensuring customer satisfaction. Sea Ray's warranty covers both parts and labor. Our suppliers are expected to support this warranty by offering the same warranty on their products. Suppliers will receive a quarterly "Warranty Claims Statement" so they can review recent warranty claims and provide feedback to customer service and corporate purchasing regarding the disposition and corrective action on defective parts.
Replacement Parts - Consumers demand readily available replacement components and, by working together, Sea Ray and its suppliers will meet this expectation. Sea Ray is committed to making spare and repair parts available for previous model-year products. Suppliers are expected to support our replacement parts program by making products from past model years readily available. Sea Ray will periodically send suppliers a "Parts Order Performance Report" that identifies the number of days it takes to ship each replacement parts order. Our goal is to ship 75 percent of all replacement parts orders to the customer within one day, 85 percent within two days, and 95 percent within five days of receipt of the order.
Return Policy - In the event that Sea Ray must return a part to a supplier, regardless of the circumstances, it is our policy to debit the supplier for the cost of that part. "Return Goods Authorization" numbers will be obtained in advance of the return if required by the supplier. Each return will be accompanied by a document that details the reason for the return, the party responsible and disposition. The supplier may re-invoice Sea Ray for returned parts when repairs / replacements are made. All repair charges must be approved in advance by Sea Ray Purchasing.
Product Liability - Suppliers are required to maintain general product liability insurance with respect to the products supplied to Sea Ray. This coverage will be a minimum of $1 million and may be more, depending upon the relative liability exposure of the item.
Confidentiality - As Sea Ray is continually striving to stay ahead of the competition, it is essential that discussions of any nature be held in the strictest confidence. At times, depending on the circumstances, suppliers will be asked to sign a formal confidentiality agreement.
Ethics - All purchasing personnel within the Sea Ray organization, and the suppliers they deal with, are expected to conduct their business in accordance with the 12 "Principles and Standards of Purchasing Practice" as defined by the National Association of Purchasing Management (NAPM).
Supplier Visitation - Sea Ray requests that suppliers meet with corporate purchasing at least quarterly to review the status of the products and services supplied. Additionally, suppliers should plan to visit Sea Ray's plants at least quarterly to confirm that their products are being properly installed in our boats.
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