A Supplier Quality Management Solution can greatly improve an organization’s control of its supply chain. Too often products from suppliers or sub-tier suppliers enter a company’s production cycle with less than acceptable quality. Without complete visibility into activities, vendor costs cannot be contained.
Since suppliers are vital to the manufacturing process, establishing a system to track supplier quality is necessary. Introducing business discipline and accountability into the supply chain will justify the cost of a Supplier Quality Management Solution many times over, however the cost of quality need not rest solely on the Prime Manufacturer.
The following are four general approaches to Supplier Quality Management Solution roll-out and deployment. These may easily be revised to meet the needs of your organization.
Prime Mandate
- Supplier Management Solution is purchased by Prime Manufacturer
- Forced supplier implementation
- Non-shared ROI (Prime)
- Prime manufacturer purchases software, forces implementation within supply chain, and assumes all associated responsibility. All savings resulting from the Supplier Management Solution are attributed to the Prime Manufacturer.
Supplier Benefit
- Supplier Management Solution is purchased by Prime Manufacturer and given to its suppliers
- Shared ROI (Prime & Supplier)
- Prime Manufacturer purchases software and provides to supplier for use. Associated responsibility, as well as realized savings, are split
- Benefits Prime Manufacturer and Supplier
Prime Endorsement
- Supplier Management Solution is introduced by Prime Manufacturer
- Supplier Management Solution is purchased by Supplier
- Shared ROI (Prime & Supplier)
- Prime supply chain managers provide face-to-face introduction of Supplier Quality Management Solution at supplier facilities
- Should supplier decide to purchase, associated responsibility, as well as realized savings, are split between Prime Manufacturer and Supplier.
Supplier Ownership
- Supplier Management Solution is purchased by Supplier
- Non-Shared ROI (Supplier)
- Supplier is introduced to the Supplier Quality Management Solution via Prime organized supplier meetings. Purchase of the solution and software implementation is completed by the Supplier who assumes all associated responsibility, as well as all quality improvement savings resulting from the Quality Management Solution.
Suppliers play a crucial role in quality management. TIP Supplier Quality Collaboration from TIP Technologies provides the technology you need for an effective supply chain management strategy.
Download our white paper today and discover how you can control supplier costs and begin to hold suppliers accountable.