"Visibility into real-time quality performance levels at suppliers can lead to reductions in total supply network costs for both parties. Suppliers will also be thwarted from masking scrap and rework rates or elongated cycle times. Supplier scorecards can include true quality measures, and total product supply costs can be reduced."
-- Simon Jacobson, AMR Research
-- Simon Jacobson, AMR Research
Supplier Quality Management
Today more than ever, final product quality is highly dependent upon a company's supplier product quality. Inconsistent or low quality incoming lots can lead to long-term problems for any manufacturer; poor supplier quality costs companies billions of dollars annually. Managing risk within this supply network is a growing strategic imperative.
Supplier quality management and performance monitoring are key components of any risk management 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.
Supplier quality management and performance monitoring are key components of any risk management 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.
Risk Mitigation
A study by the Aberdeen Group reports that 58% of those surveyed have suffered financial losses as a result of supply chain disruptions. These companies plan to improve supply chain risk management by implementing a data-driven, collaborative approach to working with suppliers.
The Aberdeen Group identifies five strategies for managing supply risks:
- Define and enforce standard performance and risk measures and assessments.
- Make risk management a core and repeatable business discipline.
- Adopt sourcing methods to balance cost, performance, and risks.
- Leverage technologies and information services to improve risk planning, monitoring, and response.
- Develop and collaborate with suppliers to detect and mitigate risks.
ProFicient On Demand is a key component of this approach, as it allows you to view and analyze supplier quality data from the shop floor in real-time. This approach to supplier quality allows you to proactively manage potential quality issues at the source, before product is shipped and without relying on after-the-fact Certificates of Analysis.
If a problem occurs at any of your supplier's facilities, ProFicient will immediately send out notifications. This rapid problem identification and resolution helps to create an environment that fosters collaborative relationships between you and your suppliers and reduces overall supply chain quality costs.
Visibility of Supplier Shop Floor Data
ProFicient on Demand provides real-time statistical analysis and visibility of quality data while products are still at the supplier's facility. Using this system, manufacturers save the time and expense of additional shipping and receiving of defective products.
If a problem occurs at any of your supplier's facilities, ProFicient will immediately send out notifications. This rapid problem identification and resolution helps to create an environment that fosters collaborative relationships between you and your suppliers and reduces overall supply chain quality costs.
