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 defence 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:
- Improve incoming material quality;
- Reduce lead times;
- Help achieve uninterrupted supply;
- Enhance pricing competitiveness;
- Improve customer service;
- Strengthen and protect your brand image and reputation;
- Improve the performance of your suppliers;
- Drive continued improvement of your quality systems;
- Protect sales revenue by helping to prevent late shipments, poor quality, wasted materials, rework, etc.
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.
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.