Supplier performance has never been more crucial to business success than it is today. Suppliers performing well can help the organization to be more efficient, produce higher quality products, reduce costs, and most important, increase profits. On the other hand, suppliers performing badly can interrupt organization's operation and make the organization to fail in their commitment to provide high-quality products to customers. Also, effective supplier management is increasingly being seen as a competitive differential for businesses across many industries.
Organizations that adopt best-in-class supplier performance management practices are two to three times as likely to achieve supplier on-time delivery and first-time fill rates that are above the market average.
But managing supplier performance can be challenging at the best of times! How can you ensure that your supplier delivers the right goods, at the right time and the right quality?
The first line of defense could be incoming product inspection. Pre-existing quality defects in delivered primary products will influence every stage of the manufacturing process and impact on the overall quality of a finished product. The inspection of quality-relevant characteristics during the delivery process considerably reduces this risk. If the delivered product does not meet the required specifications, this immediately activates a supplier complaint.
Also, in order to ensure that your customers receive the required quality, the same methods and techniques used in the incoming goods inspection can be applied for the outgoing goods inspection process. By performing these inspections only products that match the required customer specifications will be shipped.
Simply put, inspection is the process of measuring, examining, testing, or otherwise comparing the unit of product with the established requirements.
The inspection and measurement process helps your organization to:
While measuring supplier goods and performance is very costly and time consuming, it certainly can be justified by the benefits of identifying and resolving inefficiencies and performance problems.
With decreasing product life cycle and time-to-market, the challenge to deliver quality products on-time increases. If a product is found not to meet the appropriate quality specifications for the marketplace - either after or late in the production stage - the results can be loss of product and revenues, delayed shipment or wasted materials, and the potential risk of a product recall.
The dynamic business environment today requires organizations to effectively use all available resources to remain competitive. The quality and cost of a product or service offered in the market is a function, not only of the capabilities of the organization, but also the supplier network providing inputs to the organization.
Ensuring that suppliers maintain high quality programs requires tracking and management of supplier qualifications, audits, nonconformance, corrective actions, and other processes. As organizations continue to rely on outsourcing as a crucial element of their supply chain, they are also realizing that incorporating supplier performance and material inspection tools into their overall quality management systems is a requirement for reducing risk and decreasing costs.
Certainly, supplier performance and material inspection should be monitored on a continuous basis to ensure the success of your suppliers, your organization, and most importantly your customers.
SE Inspection is a web-based tool designed for measuring supplier quality, delivery, service performance, as well as incoming/outgoing goods across your business enterprise. If your organization wants efficient, flexible, and state-of-the-art software for inspection planning, inspection data gathering, evaluation, and analysis, then SE Inspection is the tool of your choice. Whether for process-accompanying inspections, incoming or outgoing goods inspections use SE Inspection as the foundation for supplier performance evaluation.
From initial qualification to supplier corrective actions, SE Inspection provides a centralized tool for managing all supplier related quality data, issues and actions. SE Inspection enables your organization to reduce the cost of poor supplier quality and decrease efforts required to ensure your suppliers are meeting the standards that your organization has established.
Most importantly, SE Inspection enables organizations to improve quality, and reduce costs and risks associated with a growing number of regulatory compliance and corporate governance processes such as those related to the ISO 9000 Quality Guidelines, Sarbanes-Oxley, FDA 21CFR Part 11 Electronic Record Keeping, Good Manufacturing Practices, OSHA Regulations, and others.