Value Of Early Supplier Involvement implementation

Interpret the value to the organization when early supplier involvement (ESI) is implemented effectively.

Early supplier involvement and early supply involvement (ESI) is important in assuring the organization that the specified purchase is procurable and of good value (Johnson, Lendeers& Flynn, 2010). During the acquisition process, the organization not only takes its needs into consideration but also has to take the quality of the potential purchase, product or service. Ensuring that the products and services purchased are of high quality and they effectively serve the purpose of which they were intended is an essential aspect of ensuring that the purchase adds value to the organization.

Failure to execute this step effectively could have detrimental effect on the organization(Zsidisin& Smith, 2005). The organization could suffer huge losses that go beyond the investment committed in purchasing the product or service. Other related losses include time resources invested in absorbing the newly purchased product or service as well as costs associated with the malfunctioning product or service.  Lastly, early supplier or supply involvement saves the organization from the hassles that come with having to reverse or modify the design that has been already agreed on in order to accommodate the supplier’s needs (Zsidisin& Smith, 2005).

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