Supplier and Global Procurement Standards

DJO upholds rigorous standards for its suppliers to ensure that the finished products are of the highest quality and efficacy. All materials must comply with our quality standards and specifications. This is being accomplished together with our supplier quality assurance program. Qualification is an intensive process, which includes visiting supplier sites. After supplier selection and qualification, ongoing relationships are managed via scorecards.

DJO targets suppliers who are focused on lean initiatives. Supplier selection is based on the ability to reduce cost, lead times, freight, and eliminate non-value added processes that may be in the supply chain. Suppliers are expected to bring new ideas and opportunities to grow partnerships with DJO. Suppliers are expected to obey laws that provide a safe and healthy work environment and protect environmental quality.

DJO practices total life cycle cost management through the deployment of global commodity strategies. The strategies include the use of advanced tools such as design-to-value, optimizing the cost and value delivered to our customers.

Global Supply Chain Standards

The supply chain starts with our customer, and reaches back to the origin of raw materials, components, and finished goods. DJO is committed to ensuring our customers receive their products accurately and on time, that our factories are optimally utilized and that our suppliers can plan effectively. In that spirit, DJO has an active internal Sales and Operations Planning (S&OP) cycle to ensure more accurate visibility to demand over time. The S&OP cycle feeds scheduling at the factory and our distribution centers to optimize landed cost to deliver products to our customers. DJO also uses demand-based replenishment, or "pull" systems with suppliers, to help manage internal and supplier inventory and allow suppliers to work to their own schedule to fulfill our needs.

 

Last Updated: 09/10/2009