What is supplier quality management? What is the process of supplier management?

What is Supplier Quality Management?

Supplier Quality Management (SQM) is a process used to ensure that suppliers consistently deliver goods and services that meet agreed standards. SQM helps companies improve supply chain quality, reduce costs and gain competitive advantage.

The Supplier Quality Management System is designed to help companies achieve a high level of product quality at the lowest cost. The process includes early problem identification, progress monitoring, and corrective action when necessary.

To successfully implement SQM, buyers and suppliers need to work closely together. Buyers must work closely with suppliers to quickly identify and resolve problems. This means that buyers need to understand the importance of supplier quality and take responsibility for ensuring that suppliers deliver high-quality products and services.

Buyers should also regularly monitor supplier performance, including measuring supplier quality against agreed standards. It is also critical to review supplier performance reports and use them to identify areas for continuous improvement.

Finally, buyers need to clearly communicate expectations and requirements to suppliers. This ensures that suppliers can deliver consistent quality regardless of who is responsible for each stage of the production process.

What is the supplier management process?

The Supplier Management Process (SMP) is a series of steps used to ensure quality control throughout the supply chain. SMP covers everything from managing supplier performance to ensuring compliance with regulations and standards. In addition, establishing a material requirements planning (MRP) system can also help achieve this goal.

SMP is a key component of any company’s overall quality management system. Without a well-designed SMP, a company could face financial and reputational losses due to poor product quality.

SMP consists of four main parts:

1. Supplier Selection – Selecting the right supplier based on criteria such as price, delivery speed, quality, reliability and availability.
2. Contract Negotiation – Businesses need to negotiate contracts with suppliers to ensure that the agreement meets their needs.
3. Monitoring and reporting – Companies need to monitor supplier activities to meet contractual obligations and report on these activities to stakeholders.
4. Compliance – Companies must comply with applicable laws and regulations, including those related to food safety, health, the environment and labor.

Companies often take different approaches to implementing an SMP. Some companies may use a manual approach, with managers reviewing each step of the SMP; others may automate the process through software.

Regardless of the approach, companies need to remain vigilant in monitoring suppliers. This means reviewing supplier performance at least quarterly.

If a supplier fails to live up to the agreement, the company needs to take prompt action. In some cases, it may be necessary to terminate the relationship. However, if the supplier does not meet expectations, the company can still continue to work with the supplier by adjusting the requirements.

To avoid subsequent problems, companies should develop formal policies that clearly define the actions to be taken if suppliers fail to meet their contractual obligations.

How to choose a supplier

Choosing suppliers is a critical step in any business. The quality of a product or service is determined by its components. So, how do you choose a supplier?

When choosing a supplier, you need to focus on the following three aspects:

1. Price – Make sure you’re getting a fair deal. Ask questions and negotiate terms.
2. Quality – Ask yourself if the product meets your needs. Does it fit? Does it last? Can you return it if it doesn’t meet your expectations?
3. On-time delivery - clarify the product delivery time. Will it arrive on time? Is it damaged during transportation? What will happen if it is not delivered?

Once you have selected a supplier, you should build a relationship with them. This means communicating regularly, ensuring they meet expectations, and continually tracking their performance.

How to measure supplier quality management?

Supplier quality is measured through a quality management system (QMS). A QMS is designed to help companies optimize processes and procedures to produce consistent products.

QMS is divided into two categories: internal and external.

• An internal QMS measures the quality of goods produced within an enterprise.
• An external QMS measures the quality and consistency of goods produced by suppliers.

Both QMS use metrics to measure supplier quality. Metrics include defect rates, delivery times, cycle times, and inspection results. These metrics are used to determine whether suppliers are meeting expectations.

When evaluating supplier performance indicators, consider the following factors:

• Defects per million units – This metric shows the number of defects over the past 12 months.
• Percent Defective Parts – This metric shows the percentage of defective parts found during inspection.
• Delivery Time – This metric shows the average time from order placement to delivery.
• Cycle Time – This metric measures the time required to produce each product.
• Inspection Results – This metric shows the number of defects detected during inspection.

How to manage supplier quality issues?

If you’ve ever experienced a supplier quality issue, you know how frustrating it can be. Identifying who is responsible and resolving the issue is not easy. If you don’t manage supplier quality issues, your business will suffer – your customers will pay more, and you will miss out on sales opportunities.

Managing supplier quality issues means resolving problems quickly and efficiently, and taking steps to prevent future problems.

To prevent supplier quality issues, a supplier quality policy should be developed. The policy should clearly define the procedures for identifying and resolving quality issues.

The quality policy should contain the following elements:

• What types of quality issues are covered?
• Who is responsible for solving the problem?
• How to handle supplier complaints?
• How do I escalate a quality issue?
• How often is supplier quality audited?

Supplier Quality Certification

Quality certifications are essential because they ensure that suppliers meet certain standards. Certifications are also useful when negotiating contracts with suppliers - they show that you are well prepared and willing to pay a premium for quality.

The following are common quality certification items:

ISO 9001 is an internationally recognized quality management system standard that many companies use to ensure that their suppliers meet specific standards.

SGS is one of many companies around the world that provide product and material inspection services. Its inspectors certify products and materials according to international safety standards.

TÜV is another global company that inspects products and materials to ensure they meet safety standards.

The National Sanitation Foundation (NSF) is a third-party organization that tests products for compliance with food safety regulations.

Underwriters Laboratories (UL) is a third-party testing organization that ensures that electrical equipment meets safety requirements.