Supplier Quick Reference Guide
Graco relies extensively on our supply partners in serving our markets and customers. We recognize our suppliers as vital contributors to our success and strive to build long-term, mutually beneficial relationships to enhance our global market position. In order for Graco to meet our customer expectations, we need suppliers to deliver defect free product, on-time and at a competitive price. Our Suppliers are expected to conduct business legally and ethically with respect for all humanity. Below is a quick reference guide of our supplier expectations. Detailed expectations and metrics can be found in the Graco Supplier Handbook available online or through your Graco Purchasing contact. Through our alliances and partnerships, we will continue to exceed customer expectations and provide best-in-class products around the world.
Quality Management – Graco is known as a quality leader and expects our suppliers to strive for ZERO DEFECTS. Refer to our quality page for more information about our quality processes.
- PRODUCT REQUIREMENTS: Product shipped must meet the requirements, specifications and regulations specified on our Graco drawings.
- NO CHANGES: Suppliers (including sub-suppliers) shall not make any changes in specifications, part design, material, manufacturing process, manufacturing location, or registration status without submitting the request for change form to your Sourcing Specialist/Buyer and receiving approval.
- QUALITY STANDARDS: Please refer to our Graco Supplier Handbook for details regarding our quality expectations.
Cost Management - Graco is measured on a year over year total cost improvement which means we rely heavily on our suppliers to bring forth projects delivering an ANNUAL COST REDUCTION.
Lead-Times – Suppliers will review periodically for accuracy and work initiatives to reduce lead-times.
Delivery Performance- All orders must be delivered ON-TIME, 100% of the time.
- On-Time orders are defined as 5 DAYS EARLY, 1 DAYS LATE to the DOCK DATE at Graco.
- Need by Date and/or Promised Date on purchase orders are defined as the DOCK DATE.
- Suppliers are expected to proactively monitor and communicate any capacity constraints, holiday breaks or maintenance concerns that may hinder their ability to delivery on-time.
- If an order will be delayed, contact the Requestor/Planner (identified on the PO) immediately via email or phone with an explanation and a revised delivery date. Be sure to request a revised copy of the PO.
Purchasing Orders (POs) – Review immediately upon receipt to ensure that the delivery date, quantity, price, part revision and payment terms are correct. ORDER ACKNOWLEDGEMENTS ARE NOT REQUIRED UNLESS
one of the following two conditions apply:
- If there changes to DELIVERY OR QUANTITY, contact the Requestor/Planner with the revised delivery date or quantity with an explanation for the delay. Request a revised copy of the PO from the Requestor/Planner as confirmation the change has been entered into our ERP system.
- If there are changes to PRICING, PART REVISION and/or PAYMENT TERMS, the Sourcing Specialist/Buyer needs to be contacted to resolve the discrepancy PRIOR to the shipment of goods. Request a revised PO.
Forecast and Order Management – An OPEN ORDER REPORT and FORECAST is emailed to suppliers every week.
- If there are any variances to the open order report, please communicate with the Requestor/Planner.
- Suppliers are NOT authorized to build to forecast unless prior agreement with Graco has been established.
Freight and PO Terms – All purchase orders must ship per the terms and conditions noted on the purchase order.
- Purchase orders MUST SHIP PER THE GRACO ROUTING GUIDE. The Routing Guide details our preferred carriers and contact information.
- All shipments must ship Freight Collect. Invoiced freight charges will NOT be paid unless special arrangements have been made with the Sourcing Specialist/Buyer prior to the shipment of product.
- All shipments arriving at any Graco facility must include a barcode label per our specifications.
Invoicing - All INVOICES AND PACKING SLIPS
must contain (1) Purchase Order Number, (2) Graco Part Number, (3) Quantity and (4) Price. Graco will not release payment unless your invoice matches our purchase order in all four (4) areas.
For more details on supplier expectations and metrics, please refer to the Graco Supplier Handbook
Click here for Graco's USA Inbound Routing Guide 2018 Rev 1.
Click here for Graco's Supplier Handbook.