Today more than ever, product quality is highly dependent upon a company's suppliers. Vendors chosen unwisely could create long-term problems for any manufacturer. Poor supplier quality is costing companies billions of dollars annually. Managing risk within this supply network is a growing strategic imperative.

It is becoming increasingly evident that businesses must enhance traditional supply chain management approaches to include means by which the new uncertainties arising from these trends and developments can be addressed. These new systems must include measures to provide visibility of all manufacturing processes throughout the supply chain to ensure compliance, performance and quality of the final product.

The Aberdeen Group identifies five strategies for managing supply risks:

1. Define and enforce standard performance and risk measures and assessments.
2. Make risk management a core and repeatable business discipline.
3. Adopt sourcing methods to balance cost, performance, and risks.
4. Leverage technologies and information services to improve risk planning, monitoring, and response.
5. Develop and collaborate with suppliers to detect and mitigate risks.

Supply Chain Quality Management is a key component of any risk management strategy. Closely monitoring supply chain quality, and working with suppliers to ensure that materials are meeting specifications are key components of any SCRM strategy. Having visibility into supplier operations and quality programs (such as Six Sigma) will help ensure that the products meet requirements-reducing the risk of a defective lot.

InfinityQS' eSPC system provides statistical analysis and visibility of defective lots while products are still at the supplier's facility. Using this system, manufacturers are saving the time and expense of additional shipping and receiving for defective products.

If a problem occurs at any of your supplier's facilities, eSPC will send out an alarm at the instant the issue arises. This rapid problem identification and resolution helps to create an environment that fosters collaborative relationships between you and your suppliers.

• Whitepaper: Mitigating Supply Chain Risk
• Webcast: Supply Chain Quality Management
• Brewing up a Smooth Supply Chain

InfinityQS' renowned team of statisticians and quality engineers has published a large collection of articles and reports to help supply chain professionals improve supplier quality. Visit our resource library to access this information.