Want to take control of your supplier network? Learn 5 steps that can improve your supplier ecosystem and help you get the best possible quality from your suppliers at the lowest risk.

1. Beyond Compliance
Webinar & Podcast Series for Process Manufacturers
5 Steps to Ensuring Better Quality
from Your Suppliers
with Kevin M. Lee & Brandon Wright, Solutions Architects

2. // About SafetyChain
✔ Improve Yield
✔ Maximize Productivity
✔ Ensure Compliance
Plant Management Platform

3. Casual but Professional Format
✔ Ask questions! (Q&A at end)
✔ Only panelists are displayed
✔ Recording link will be shared
✔ Audio issues: use call-in number
Before We Get Started
BEYOND COMPLIANCE
Helpful tips

4. //
4
Meet the Speakers
Kevin Lee
Solutions Architect at SafetyChain
● Over 30+ years of manufacturing,
distribution, and supply chain
experience.
● Over 10 of those in Quality Risk and
Compliance arenas with companies
regulated by the FDA.
● Specializing in manufacturing and
supplier quality management.
Brandon Wright
Solutions Architect at SafetyChain
● Over 25+ years experience as a
manufacturing operations expert,
including roles as COO, Plant
Superintendent, the Director of
Operations, Ops Manager, Production
Manager & Coach.
● Formal certifications and training in the
Theory of Constraints, Lean and Six
Sigma.
Aaron Bolshaw
Moderator

5. How many suppliers
does your facility manage?

6. BEYOND COMPLIANCE
Agenda: 5 Steps to Ensuring Better Quality from Your Suppliers
1) Extend Supplier Network Visibility
You can’t manage what you can’t see!
2) Rate and Score-Card
Suppliers
Not all suppliers are equal. Must
rate and score supplier to reduce
risks.
3) Automate Reminders and
Improve Supplier
Communication
Auto-Pilot reminders eliminate the tedious
tasks of collecting supplier requirements.
5) Trigger Supplier Corrective
Actions (SCAR-CASES)
Immediate action is key.
4) Build Supplier Risk Models
When assessing supplier risk, use data
thoughtfully, never guess. Risk models are
not one-size-fits-all.
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7. BEYOND COMPLIANCE
Preliminary Assessment
● Is it easy to see a comprehensive view of
suppliers in one display?
● Do you require emails and spreadsheets to
track your suppliers?
● Are your suppliers’ requirements organized?

8. BEYOND COMPLIANCE
Step 1: Extend Supplier Network Visibility
How?
● Audits
● Certifications from credible 3rd parties
● Receiving gates
● Shared Visibility/Integration
● Vendor performance tracking

9. BEYOND COMPLIANCE
Example: Supplier Status At-a-Glance

10. BEYOND COMPLIANCE
Rating and Scorecarding Your Suppliers: Preliminary Questions
● How do you know if your suppliers
are good business partners?
● How many ways do you score your
suppliers?
● Do you have a formal criteria to rate
your suppliers?

11. BEYOND COMPLIANCE
Step 2: How to Rate and Scorecard Your Suppliers
Build an Approved Supplier Program
● Define your criteria for approving and maintaining approved status
● Communicate your expectations and criteria to your suppliers
○ Outline your scoring criteria and methods
○ Build criteria, contractually, into your Purchase Orders
○ Build into your SOPs, too!

12. Do you have an
approved supplier program?

13. BEYOND COMPLIANCE
Step 2: Rate and Scorecard Your Suppliers
● You’ve Established Performance Criteria, Now
Track How They Do
● Rate Supplier Performance
○ Grade with a Score Card
● Communicate
○ Feed their performance levels back to them

14. BEYOND COMPLIANCE
Using Software to Rate and Scorecard Your Suppliers

15. BEYOND COMPLIANCE
Step 3: Automate Reminders & Improve Supplier Communication
Add layers efficiently
● Have a plan, execute the plan
● Build a system with automated tools for
collecting, analyzing and alerting
● Transparency adds efficiency - especially when
applied on both ends
● Push work back on your suppliers

16. BEYOND COMPLIANCE
Step 3: Automate Reminders & Improve Supplier Communication

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Example of Scheduled Reminder for Suppliers

18. BEYOND COMPLIANCE
Example Supplier Portal Inbox (Tasks and Due Dates)

19. BEYOND COMPLIANCE
Step 4: Build Supplier Risk Models
Define your risk criteria
● Criticality or impact, frequency or
likelihood, types of risks
● Scoring can be as simple as High,
Medium, and Low, or complex with
weighted scores
● Set thresholds, triggers and alerts
● Have plans for failure mode

20. Do you have a supplier risk model?

21. BEYOND COMPLIANCE
Step 4: Build Supplier Risk Models- cont’d
Now that you have criteria, apply it!
● Identify and rank the components of
your products
● Identify and rank the suppliers of those
components
● Sort the results
● Place your focus where it is needed

22. BEYOND COMPLIANCE
Example: High and Low Risk - Suppliers and Items

23. BEYOND COMPLIANCE
Example: Supplier Risk Models

24. BEYOND COMPLIANCE
Step 5: Trigger Supplier Corrective Actions (SCAR-CASES)
● Issue your supplier a SCAR to prevent
the problem from recurring
● Track your own corrective action process
to demonstrate conformance
● Add these incidents to your scorecards
When failure occurs
● Have a plan to address the problem, and fix the cause... these are distinct actions

25. BEYOND COMPLIANCE
Example: Trigger Supplier Corrective Actions (SCAR-CASES)

26. BEYOND COMPLIANCE
Recap: Five Steps to Ensuring Better Quality from Your Suppliers
1) Extend Supplier Network Visibility
Gain visibility into your supplier network with
audits, CoA’s and CoC’s, required certifications,
and vendor performance tracking tools
2) Rate and Score-Card Suppliers
Track performance over time, and keep
your system efficient. If you want the best
product, that starts with the best suppliers 3) Automate Reminders and
Improve Supplier Communication
Autopilot systems allow you more
control with less effort- scale your
supplier management efficiently
5) Trigger Supplier Corrective
Actions (SCAR-CASES)
By monitoring performance you can
address issues quickly. Issue
corrective actions to minimize risks
4) Build Supplier Risk Models
Define your risk assessment criteria,
apply it to your products and suppliers,
and bring focus to your program
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27. Q&A
BEYOND COMPLIANCE

28. More Resources at www.safetychain.com
White Papers & Surveys
Webinars & Videos
Product & Partner Info
Solution Consultation July 6, 2021: How Fresca Mexican Foods
Integrated Quality & Production Systems to Keep Up with Growth
safetychain.com/resources/webinars-events/
BEYOND COMPLIANCE