Quality Glossary Definition: Supplier quality Show
Supplier quality is a supplier’s ability to deliver goods or services that will satisfy customers’ needs. Supplier quality management is defined as the system in which supplier quality is managed by using a proactive and collaborative approach. It's in an organization’s best interest to ensure that its service or material suppliers are providing the highest quality products and services while also conforming to pre-established requirements. This is often accomplished through the use of supplier quality management systems (QMS), which allow companies to monitor supply chains and inspect or audit materials and services at regular intervals. Supplier quality management begins early in the product design and supplier selection process. It continues through the entire life cycle of a product and for the duration of the relationship with that particular supplier. Proper supplier quality management tactics include taking inputs (such as employee work, marketplace requirements, operating funds, raw materials, and supplies) and effectively and efficiently converting them to outputs deemed valuable by customers. Supplier performance and quality management go beyond securing a low purchase price or getting the best deal on bulk materials. It also includes:
The Benefits of a Proper Supplier Quality Management ProcessAt one time, it was not uncommon to line up multiple suppliers for the same raw material, usually due to concerns about running out of stock or a desire to play suppliers against one another for price reductions. This has given way to working more closely with a smaller number of suppliers in longer-term, partnership-oriented arrangements. The benefits of supplier partnerships include:
Establishing an effective supplier management process requires:
Supplier Selection Criteria and StrategiesSupplier selection criteria for a particular product or service category should be defined by a cross-functional team of representatives from different sectors of an organization. In a manufacturing company, for example, members of the team typically would include representatives from purchasing, quality, engineering, and production. Team members should include personnel with technical/applications knowledge of the product or service to be purchased, as well as members of the department that uses the purchased item. Common vendor and supplier selection criteria includes:
Methods for determining how well a potential supplier fits the selected criteria:
Supplier Quality CertificationsAdvance your career and your organization with an ASQ certification. These certifications emphasize supplier quality in their bodies of knowledge. Managing Supplier/Buyer RelationshipsQuality, cost, and delivery have long been considered key indicators of supplier quality management and performance. The arrival of lean methodology has added another beneficial aspect to the quality supplier network, and more recently another indicator has emerged in today’s environment: connectedness. This is a measure of how well an organization is connected to and integrated with its supply chain. To create a lean but integrated value supply chain, a strong relationship and collaboration needs to exist between both supplier and buyer. This partnership includes:
Developing and implementing a wide range of communication initiatives must be aimed at improving the responsiveness of the supply chain may include:
E-Business in a Lean Supplier NetworkA critical component of creating a lean supplier network is the implementation of an e-business strategy. Technology should be used to enhance communication and move an organization and its entire supplier network toward paperless transactions. This can help improve efficiency in data transformation and information flow without unnecessary costs. Electronic commerce can also help increase access to a larger number of global suppliers that may be strategically aligned with your organization. Collaboration is critical for just-in-time (JIT) production of the right amount of product exactly when it is needed, which can serve as a mechanism to avoid lead time issues. Collaborative supply chain solutions function as a broker between customer and supplier by communicating supply-and-demand needs and issues across the supply chain via visual signals. Collaborative commerce (c-commerce) allows cyber communities to share intellectual capital, integrate diverse business processes, and increase corporate innovation, market reach, productivity, and profitability. The technology must provide a means for understanding the entire supply chain, encompassing what the roles, policies, and processes that define its personality are and how business transactions are handled, to encourage optimal efficiency across the supply chain. “Cost Out” vs. “Price Down” StrategiesIn the past, when there were material price increases, the increased cost was passed up to the customer. Today’s increasingly competitive climate often leads to costs being passed down the supply chain instead. Likewise, the introduction of technology and methodologies that can lead to increased productivity have prevented labor costs from impacting on product costs, making price differentiation within market segments less likely. This requires the entire chain to continually adapt and respond to ongoing changes in cost. Pressure to reduce costs has forced companies to find innovative ways to offer high-performance products at a low cost. This has prompted organizations to assess the role of their suppliers and the supply chain as a source of increased profitability and cost reduction. However, as cost pressures are passed down the supply chain, cost reduction and the overall enhancement of value cannot be viewed as an isolated initiative. Price reduction is only a tactical short-term solution and organizations must understand that there is a limit to how much a supplier can reduce its price and still remain viable. Instead of focusing on a "price down" strategy, organizations need to employ a "cost out" strategy. This requires a holistic view of the supply chain whereby an organization works with its supply base to achieve the removal of waste through joint initiatives aimed at value creation. Value creation requires:
To create value, greater collaboration is required by organizations up to the customer, down to suppliers, and across the entire supply chain. These improvements in communication, information sharing, and relationships can not only create value, but establish stronger, more efficient supply chain management processes. Supplier Quality resourcesYou can also search articles, case studies, and publications for supplier quality resources. BooksThe Certified Supplier Quality Professional Handbook Managing Organizational Risk Using The Supplier Audit Program ASQ Certified Supplier Quality Professional (CSQP) Study Guide The ASQ Supply Chain Management Primer ArticlesBeyond Tried and True (Quality Progress) With much of an organization's value dependent on its product suppliers, a strong supplier audit program is essential. Organizational risk can be reduced or eliminated by effective management of suppliers, based on a systematic analysis of their delivery, response and rating. Quality In The First Person: Supplier Hugger Or Engineer? (Quality Progress) The important dual role of supplier quality engineers is explained. They monitor the supply base, ensure suppliers are providing quality products, monitor supplier performance, evaluate corrective and preventive action responses, and perform audits. Supplier Selection And Maintenance (Quality Progress) All suppliers are not equally important to your company’s success. The extent you go to depends on the associated cost, production and risk. Adapted from The Certified Manager of Quality/Organizational Excellence Handbook, ASQ Quality Press. What are the four stages of supplier selection?Four Basic Stages of Supplier Selection. Supplier Selection Criteria. ... . First Stage: Evaluating Offers. ... . Second Stage: Operational Capacity Analysis. ... . Third Stage: Technical Capability Determination. ... . Fourth Stage: Financial Analysis. ... . Conclusion.. Which of the following is the first stage of supplier selection?The first step in the supplier selection process is to create a supplier selection scorecard.
What are the four stages of supplier selection quizlet?What are the four stages of supplier selection?. Supplier evaluation.. development.. negotiation.. contracting.. Is there a most important supplier selection criterion?The most important factor of supplier selection should be the quality level of the procurement items. Product quality should consistently meet specified requirements since it can directly affect the quality of the finished goods.
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