Streamlining the supply chain has become an essential aspect of every organization. It requires a proper supplier quality management system to attain the strategic goals of a business. However, the approach towards process and risk management may vary.
Regardless of the approach you make, you need a robust supplier quality management system to optimize all the supplier-related processes and reduce unnecessary expenditures such as product recalls.
Many companies still rely on traditional supplier processes; wherein there is no standardized flow of processes. The metrics to evaluate the supplier performance are not measurable at all the levels that increase the chances of deviations. It’s high time that they should upgrade to the software systems for streamlined processes, improved accessibility, lesser wastage, minimum manual intervention, improved revenue and quality statistics with analytics, and brand reputation. Moreover, you can identify the KPIs that help to measure success and reflect the ubiquitous strategy of an organization.
Critical Steps for a Successful Supply-Chain Process
Having a successful supply chain process requires you to make a step-by-step approach. It involves seven key steps to streamline supply chains:
- Analyzing the internal requirements
For a successful supply chain process, you should start with identifying the internal requirements. It will help you to define metrics and benchmarks for supplier performance accordingly. It may involve collecting different data indicating the statistics of existing suppliers to create new and improved strategies.
Knowing what your organization needs is critical for establishing a solid foundation for a well-aligned supplier process.
- Assessing the supplier market
The second step requires your procurement team to research and assess the supplier market to identify the potential locations from where they can get the raw materials, machine, and other components for a quality product. The main objective is to determine the limitations for processing orders of procurement-sufficient materials, especially in the case of a single source of supplies.
Assessing the supplier market will also help you to make cost-effective and informed decisions.
- Gathering the supplier details
Third in the list is collecting information about the potential suppliers that will help you to compare the options based on the factors that matter the most for your business. From reviews to their market presence, all the information will help you to make an informed decision. It is recommended to verify all the information you gather to avoid any discrepancies later.
More will be the information you collect about the supplier; more accessible will be sorting and selection process.
- Developing and Implementing the supplier strategy
Based on all the details and information you have collected in initial steps, you can develop and implement a competent supplier strategy. Developing the right supplier strategy will primarily depend on the marketplace competition and risk tolerance ratio. On the other hand, successful implementation will depend on the involvement of the suppliers, the specific equipment or technical expertise they have, and their role in the broader picture.
However, organizations can consider many other factors, including delivery services and pricing structure, to curate a better strategy.
- Selecting the right suppliers
Every organization needs to select its vendors and suppliers carefully since it can cost them the entire business. Formulate a supplier selection criterion for a precise selection based on the critical details, including their market credibility and customers they are catering to. You must evaluate all the supplier details carefully. You can also talk to their customers about their experience.
So, gather as much information as you can for the shortlisted suppliers to avoid any disruptions in material supply or quality deviations. Supplier selection is critical to remain competitive in the market.
- Evaluating the supplier performance
We have already discussed the selection process and criteria’s significance for the new suppliers. But you need to be equally careful with the evaluation of supplier performance for all the existing suppliers if they are following the standards and specified requirements. You can also prepare a supplier scorecard to sort out the best options based on their business performance.
Be sure to maintain the supplier performance evaluation as a continuous practice to maintain consistent quality.
- Implement a supplier quality improvement plan
You have evaluated the supplier performance, what’s next? The next step that most of the organizations ignore easily is creating and implementing a supplier quality improvement plan. It plays a vital role in driving the culture of continuous improvements. Make sure every improvement plan you make is implemented, or you will end up putting your efforts in vain.
If you want to drive value through your supply chain processes, these steps will surely help. However, you cannot ensure consistency with the conventional ways of streamlining and managing these processes. Having a supplier QMS software can help your organization to cut down costs and time, unlike traditional supplier processes and systems.
The software can help define all the requirements clearly while helping you to continuously monitor supplier performance and determine the process improvements for the higher quotient of quality.
We all know that material supply, being the basic activity for every manufacturing organization, must be managed appropriately for desired outcomes. From the selection of the right supplier to defining the improvement metrics, every process has a significant contribution to the successful production of quality products. And, an inappropriate selection of suppliers could result in several problems such as:
- Repetitive orders
- Delays in supply delivery
- Procurement delays
- Higher expenditures, and much more.
Right supplier quality management software can help to make the entire supplier cycle effective and efficient, fostering a culture of continuous communication and improvement. It will ensure long-term benefits and stronger supplier relationships for the organization. If you are also interested in such a mutual-benefit deal, you can opt for the Qualityze Supplier Quality Management Software System.
Qualityze Supplier Management System helps you manage supplier processes in four easy steps, i.e., track and manage supplier qualification process, maintain supplier records, manage approved supplier lists, and prepare & share scorecards. It can seamlessly integrate with other third-party applications, including ERP, to create a closed-loop quality management system.
Based on the most powerful and secure Salesforce.com platform, Qualityze offers organizations unparalleled flexibility and scalability to cater to the needs of their ever-growing and changing business requirements without any hassles. This smart supplier solution requires zero to minimal maintenance costs. Doesn’t this supplier system sound like a worthy investment?
No hurry to make your decision when you can have a product tour for free! You can request a free demo now and experience the Qualityze difference in real-time. For more information, get in touch with our customer success team, and we will be right there for you.