How to make your supply chain more effective ?

by Boundless Management Advisory Services

Certain methods that help make your supply chain more effective are as follows. We too offer some of the below services that makes your business worth.

1.    It is imperative to establish a list of supplier metrics and key performance indicators that are measured across all business units. Some metrics to consider are as follows:

·         Percentage of products out of compliance standards.

·         On-time delivery

·         Percentage of goods returned

·         Percentage of defective products received

·         Defective parts per million

·         Success percentage of new product introductions

By standardising the way the above metrics are calculated and reported on, will contribute in identifying improvement areas and help to determine areas that require additional resources or some kind of change.

2.    If a supplier is present then a risk to your business is present too. Companies create supplier-risk scorecards to measure the performance of suppliers. The cards give ranks to suppliers based on their current as well as their historical performance. The cards in a way help in risk management. The scorecard process is beneficial especially for businesses which deal with thousands of suppliers.  Such processes when standardised can help mitigate risks and can provide insights driven by data that help in making decisions for business units which work with suppliers or are mulling to work with suppliers. The strategy is to hold suppliers more accountable for thequality of the products that they deliver.Businesses are even now-a-days investing in their supplier's supply quality management abilities to minimise the potential for and cost of poor quality.

3.    As suppliers are spread across the world, there is a challenge to meet standards of compliance for components produced especially when organisations do not have the resources needed to conduct supplier audits that in turn support meeting compliance requirements. The standards may be internal, external, catering to industry or may be government regulations. To avoid such challenges, it is imperative to create a good, healthy relationship in association with a formal audit-management plan which reduces the number of visits onsite and the depth in the supply chain to which you will go while auditing suppliers. If such relationships are established on trust and the parties involved focus on quality and see that the focus benefits all, then the process is likely to be effective for all. Organisations are now-a-days creating supplier portals to communicate requirements and for verifying that the needs are being met.

4.    Another way is to establish an integrated IT system that has deep roots in your supply chain. Since many organisations have it implemented already, many face the disconnection challenge as many parts and sources are disconnected. The essential systems that cannot afford to be disconnected are financial, quality, operational and quality  systems. These systems when not tied together gives adverse affects and prevent from giving solutions in the areas of corrective and preventive actions, failure mode and effect analysis, employee training, production part approval process and document control.

Making history, organisations are investing in integrated solutions thereby generating closed-loop quality management.Such solutions integrate areas starting from procurement, design, manufacturing and to service delivery.Software solutions such as ERP, MOM, PLM and EQMS are being used now-a-days. The solutions are effective once implemented and provides access to enterprise asset, supplier, product and financial data. Such solutions help organisation to automate many manual and paper-bound procedures. They help manage them in a single united system rather than in many disoriented ones. These help in delivering visibility levels across the organisation and enable interaction between functional units.

For more on supplier quality, call us at +91-11-66797769 or e-mail at info@boundlessindia.comor visit us at http://www.boundlessindia.com.

Sponsor Ads

• Ad Space Available - Rent it Now!

Created on Dec 31st 1969 18:00. Viewed 0 times.

Comments