Setting up quality process
According to ISO’s latest annual report, 85% of companies that implement a supplier tracking system experience improved business perception, increased demand for products and increased market share. This is also measured by improved financial performance and return on assets. According to this study, a 13% increase in turnover between two companies in the same sector was measured. In particular, this is made possible by a better follow-up of the re-invoicing of nonconformities to suppliers, by notifying them as soon as the problem is identified, and by calculating in real-time the costs incurred in relation to the contractualized quality requirements.
Today, more than one million companies worldwide are implementing their own Quality Management System based on the globally recognized international standard ISO 9001. This standard is used by all types of industries in order to achieve the highest level of customer satisfaction. For buyers, the supplier’s quality management system is one of the most important selection criteria. Suppliers follow up in five key steps.
Master rather than control
Based on a relationship of trust and a desire for profitability, the identification of efficient suppliers reduces the need for control. On the other hand, identifying less efficient suppliers allows us to draw up reports and identify areas for improvement using visual indicators (number of non-conformities, reactivity rate, etc.). This monitoring allows us to outsource part of the management of non-conformities and thus reduce the cost of non-conformities. For example, it is essential to draw up a list of its critical suppliers. That is to say, all suppliers potentially presenting at least one of the six risk criteria considered critical:
Technical risk
Business risk
Risk of dependency
Strategic Risk
Financial Risk
Corporate Social Responsibility (CSR) Risk
According to our study, approximately 50% of the identified suppliers can be considered critical. So, once the identification has been made, it is possible to ensure that requirements are met from the earliest stages of the project while minimizing risks.
This notion of risk limitation is established in a more or less long-term partnership approach between the company and its suppliers. For example, a centralized platform allows the exchange of quality procedures, project schedules, audit requirements and their results.
In doing so, the notion of partnership is found in the APQP spirit, with the integration of suppliers in project management. But also in the PPAP which allows the valorisation of the supplier’s technical specifications. Because to ensure a good relationship, suppliers are integrated into a supplier directory, presenting product lists and associated declarations.
Supplier quality at the service of the quality of your products
Because quality is not a requirement but a necessity as an added value, it is important to choose the most advantageous suppliers with an overview of all sites. This makes it easier to predict delivery times, and thus to limit risks by reducing the number of potential suppliers. In this respect, Supplier Quality Assurance (SQA) is important because it ensures that its suppliers are able to deliver compliant products. This implementation ensures direct gains by reducing the frequency of incoming controls and indirect gains by reducing the occurrence of non-conformities.
The AQF is implemented in 8 steps:
Define quality requirements (product validation and non-conformity management)
Identify and evaluate suppliers who meet the requirements
Selecting potential suppliers
Verify the respect of the requirements by the chosen suppliers (quality file: certificate of conformity, FMECA…)
Cooperate with qualified suppliers (procedures)
Develop a supplier evaluation system
Identify the least performing suppliers
Monitor and improve the least performing suppliers
As a result, setting up a supplier monitoring system makes it possible to anticipate potential risks, while planning the requirements necessary for the qualification and certification of suppliers and their production processes.
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