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What is Supplier Development?
Supplier Development is a program aimed at making suppliers performance better by providing them with what they need to be successful in the supply chain. Specifically developed to provide information about expected sales growth and products of the company or business. Supplier development trains in the application of quality and lean tools. By utilizing supplier development effectively, you should be able to increase product quality and profitability by providing the suppliers with more information about the entire supply chain.
When do you need a Supplier Development?
When an organization is:
- Having Difficulty in Supplier’s Performance
- Frustrated with suppliers not having a disciplined system
- When suppliers’ rejection rates are simply unacceptable
- Aiming to improve suppliers’ performance,
- Companies that intend to reduce costs and streamline their operations while minimizing their defective products.
- Companies that would like to have a positive impact on an organization’s business.
- Companies that are interested in partnering with their suppliers to help them achieve tremendous benefits in the local as well as global market place.
- Companies not afraid to share knowledge and improve their collaboration across the extended enterprise.
- Many companies and businesses find it a risky affair to collaborate with their suppliers especially in giving proprietary information about their company or business, whilst it is in taking these risks they may catapult their business profits and create a positive impact in the global marketplace. Companies that are willing to take these risks should pursue the supplier development program.
Process of following the procedures and processes that are agreed on during a selection audit process. It identifies nonconformance in the manufacturing process, engineering change process, invoicing process, quality process, and the supplier/shipment process. Supplier audits are analyses that are done to document the relationship between different companies to verify compliance of a supplier’s products and processes.
Who Should Pursue Supplier Audits?
- Companies that need a supplier audit to verify their compliance to their supplier’s products or processes.
- Companies that need to improve their Return on Auditing (ROA).
- Companies that would want to manage their supply quality management system so that they can know that their suppliers are complying.
- The companies that struggle with reallocating their resources such that they cannot keep current projects on schedule while their engineers are out in the field conducting supplier audits.
- Businesses that need to conduct mutual and beneficial audits to their company and suppliers.
- Companies or businesses that would want to create an integrated auditing process aligned with internal goals and supplier commitments.
- Companies that require flexibility and consistently structured supplier audit services so that they can execute a value-adding audit program.
- Reduce inventory costs by 25-50%
- Minimizes defective products by preventing supplier defects from being used
- Reduces inventory costs to a minimum by only carrying as much as needed
- Improved knowledge and collaboration sharing throughout the extended enterprise.
- Increased responsiveness to customer needs and market dynamics.
- Establishing and manufacturing of new designs, improved quality and reliability of products are achieved.
- Time for sourcing of information is reduced by 25-30 percent
- Time to market a company’s products is reduced by up to 20 percent
- Implementation of an overall quality system.
- Establishment of documentation control.
- Control of business records is achieved.
- Establishment of customer satisfaction.
- The control of company or business operations is achieved.
- Implementation of a business management review is established.
- Nonconforming product control done through the supplier audits
- The supplier audit helps in calibration control and contract review.
- Increase profits margins because of reduced costs of production.
- Program helps the company to reduce costs in various areas including: Inventory, purchasing and supply, investments, marketing costs, etc.
- Minimized defective products leading to reduced investments costs.
- Helps companies to achieve streamlined business operations.
- Enhances the positive impact of the business in the market place.
- Reduce its inventory costs to a minimum.
- Due to increased customer responsiveness, the company or business can increase its market share in the market place.
- Creates positive impact of the company or business in the global market place because of its partnership with the suppliers, which helps in the production of quality products and improved operations.
- Ultimately contributes to the continuous improvements of the company’s projects.
By leveraging vast experience, it has, QSE organizes the entire implementation process for supplier development and supplier audits
- Supplier Development
QSE assists in supplier development through design review, process review of the suppliers, compliance review to standard requirements and compliance review to organization’s requirements by the suppliers and assist suppliers to meet or exceed the requirements
- Conducting Second Party Audits or Supplier Audits on behalf of an organization
First step in to Supplier development is to Audit the supplier to the requirements of the organization. Report the nonconformities. Follow-up with suppliers for methodical closing of all nonconformities to their logical conclusion. Advise suppliers on methods to improve to match the requirements of the Organization
- Create Supplier Audit Check lists
QSE develops Audit check lists for use in a supplier Audits. These checklists are prepared in line with the selected standard or simply as per the requirements of the customer on whose behalf the supplier audits are being conducted
- Project Coordination
QSE undertakes the entire project coordination work of supplier audits, which includes Coordinating with Suppliers, Customers, arranging audit schedules conducting audits and submitting confidential and comprehensive reports
- Follow through
QSE coordinates till the nonconformities are closed by verifying corrective actions undertaken by suppliers. QSE also verifies and validates the corrective actions of the corrective actions of suppliers based on data submitted by suppliers.
- Are Suppliers Audits Mandatory?
Sector specific standards for Automotive, Aerospace and Telecommunications have mandatory requirements of supplier audits essentially for their main suppliers or in other words suppliers whose products and services are directly used in the main product of the customer. QSE helps in meeting this mandatory requirement by conducting thorough audits