The document discusses best practices for proactively managing suppliers. It recommends having defined processes for supplier evaluation, selection, monitoring, and re-evaluation to satisfy ISO 9001:2015 requirements and business needs. It also stresses the importance of collaboration with suppliers and maintaining proper records to ensure transparency, quality control and risk management throughout the supplier relationship.

1. Robert Oakley
Commercial Director
Mike Bendall
Services Director

2. OBJECTIVES
1. Pro-Actively Manage Your Suppliers
2. Drive Continuous Quality Improvements
3. Improve Supplier Performance Visibility
4. Eliminate Recurring Supplier Issues
5. Additional Information and Resources

3. AGENDA
1. Supplier Quality Assurance 5 Minutes
• A Definition
• Why Supplier Quality is Critical To Your Business.
2. ISO 9001:2015 and Beyond 15 Minutes
• The New Requirements of ISO 9001: 2015
• Record Keeping – Compliance and a Basis for Effective Management
3. Best Practices: 25 Minutes
• Supplier Assessment.
• Addressing Supplier Issues.
• Supplier Performance Management.
• Collaboration
4. Questions. 15 Minutes

5. SUPPLIER QUALITY ASSURANCE
Juran’s definition of the processes…
1. Definition of the product’s quality requirements.
2. Evaluation of alternative suppliers.
3. Selection of the most appropriate supplier.
4. Conduction of joint quality planning.
5. Co-operation during relationship period.
6. Validation of conformance to requirements.
7. Certification of qualified suppliers.
8. Conduction of quality improvement plans.
9. Creation and use of supplier ratings.
Joseph M Juran: 1904 - 2008

6. WHY IS SUPPLIER QUALITY CRITICAL?
• Increasing global competition
• Global purchasing
• Longer supply chains
• Lean inventory and ‘just-in-time’ supply
• Performance
• Regulatory and standards compliance
• Buyer access to and demand for information

9. ISO 9001: 2015
8.4 Control of externally provided processes, products and services
8.4.1 General
• Processes, Products and Services that conform to requirements.
• Products and Services incorporated into own Products and Services.
• Products and Services provided by external providers on our behalf.
• Processes or part-processes provided by external providers as a result
of our decision.
• Determine and apply criteria:
• Evaluation
• Selection
• Monitoring
• Re-evaluation

10. ISO 9001:2015
8.4 Control of externally provided processes, products and services
• 8.4.2 Type and extent of Control
• Controls to ensure no adverse impact to our products and
services
• Controlled by QMS
• Controls for external provider and the output
• Consider regulatory compliance and external provider controls
effectiveness
• Verification activities

11. ISO 9001:2015
8.4 Control of externally provided processes, products and services
• 8.4.3 Information for External Providers
• Adequacy requirements prior to communication
• Processes, products or service requirements
• Approval of products/services, methods/processes/equipment,
release
• Competence
• Interaction
• Control and monitoring of performance
• Verification or validation at external provider’s premises

13. SURVEY RESULTS – YOUR PROCESSES
Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Do you have a defined process for supplier
evaluation?
Do you follow a defined process for supplier
selection?
Do you follow a defined process for supplier
monitoring?
Do you follow a defined process for supplier
re-evaluation?
Yes No

14. TOOLS TO MANAGE SUPPLIERS?
Issues:
• Speed
• Analysis
• Decisions
Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

15. HOW DO SENIOR MANAGEMENT VIEW
SUPPLIER PERFORMANCE REPORTS?
No Reports are Produced Writes Reports for regular meetings
Monthly Spreadsheet Reporting Real Time Reporting
Issues:
• Performance Analysis?
• Risk Analysis?
• Cost of Poor Quality?
• ISO 9001:2015 compliance
Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

16. HOW EFFECTIVE IS YOUR MANAGEMENT OF…
0
10
20
30
40
50
60
70
80
90
100
Supplier Records New Supplier
Assessment
Supplier Approval Supplier Monitoring Supplier
Reassessment
Supplier Incidents /
Errors
Highly Effective Effective Average Ineffective Completely Ineffective
Is average good
enough?
47% highly effective or
effective at dealing
with errors but…
35% ineffective or
completely ineffective
at supplier
reassessment
Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

17. REACTIVE, COSTLY AND SILOED
“There are several different managers who use different systems to purchase supplies and
often do not follow procedure as they need to act fast in response to an urgent request.” Energy
and utilities company with 20-100 employees
“Consistency across all suppliers.” Technology company with 10-19 employees
Your main challenges:
“Strictly supplier and customer relationships, no true and open partnerships.”
- Manufacturer with 100-499 employees
“Supplier’s don’t have adequate competency to achieve what they have previously promised,
resulting in a number of issues for us.” – Professional services company with 10-20 employees
“Ensuring supplier’s have an understanding of Quality and
OTD requirements.” – Small manufacturing company
“Establishing metrics for monitoring.” Professional services company with over 1,000 employees
“Escalate issues before they become major problems.” – Professional services company with 100-499 employees
“Forced to use a client approved vendor list.”
– Professional Services Company with 5,000 to 9,999 employees
“Keeping records.”- Manufacturer with over 1,000 employees

18. POLL 1
Do you believe your existing Supplier Management
processes satisfy the requirements of ISO 9001: 2015?

19. POLL 2
Do you believe your existing Supplier Management
processes satisfy the requirements of your business?

21. PRO-ACTIVE SUPPLIER MANAGEMENT
Record Keeping
• Contract
• Specifications
• Warranties
• Evaluation Criteria
• Assessment Record
• Re-evaluation Criteria
• Regular Audit Records
• Expenditure
• Cost of Poor Quality
• Realtime Dashboard and Reporting
• Record retention

22. RECORD KEEPING

23. PRO-ACTIVE SUPPLIER MANAGEMENT
Supplier Assessment
• Planning
• Design
• Customer Input, Design Goals, Standards, Quality Goals, Feasibility, Pricing
• Drawings, Specifications, BOM, Process Flowcharts, Control Plans, Work Instructions
• Design Verification, Management Review
• Risk Analysis
• Design
• Process

24. PRO-ACTIVE SUPPLIER MANAGEMENT
Supplier Assessment
• Supplier Evaluation
• Financial Viability
• Capability / Capacity
• EHS
• Social Responsibility
• Process Control
• Sub Contractor Control
• Change Control

25. PRO-ACTIVE SUPPLIER MANAGEMENT
Supplier Assessment
• Supplier Selection
• ITT (Including Specifications and Standards) and Supplier Response
• Contract Agreement
• Volumes & Pricing
• Delivery (JIT)
• Change Control
• Production Part approval
• Traceability
• Competency
• Supplier In Process Monitoring, Self Audit
• Non Conformance Management
• Monitoring, Score Card, Cost Recovery, Bonus
• Low Performance / Termination Process

26. PRO-ACTIVE SUPPLIER MANAGEMENT
Supplier Monitoring
• Accounting Aware
• Warranty, Recall and Complaints
• Scrap and Rework
• Inspection Failures
• Hidden
• Additional Quality Administration, Inspection, Invoicing
• Additional stock/inventory
• Delays and Overload
• Lost Sales
• Additional Transport and Logistics

27. PRO-ACTIVE SUPPLIER MANAGEMENT
Closed Loop processing
• Monitoring Processes
• Complaints, Warranty, Recall
• Inspections
• Non-conformances, Deviations, OOS
• Operational Delays and Additional Costs
• Review and Improvement
• Real Time Reporting
• Regular Management Review
• Supplier Response
• Joint Improvement Projects
• Supplier Re-Assessment, Re-Audit

28. COLLABORATION

29. Supplier Information
Company Name Qualsys Ltd
Address Line 1 Aizlewood’s Mill
Address Line 2 Nursery Street
City Sheffield
Post Code S3 8GG
Country UK
Company Registration
Number
3022323
Date of Incorporation March 1995
VAT Registration Number 646512047
D-U-N-S® number: 77-774-7601
VAT Certificate Qualsys VAT Certificate
Public Liability Insurance Certificate
Professional
Indemnity Insurance
Certificate
ISO 9001
Qualsys ISO 9001 Certificate
ISOQAR Audit Report – Qualsys Ltd
2016
ISO 27001 Cloud Hosting
Option (if applicable)
Node 4 Datacentre, Derby,
UK
Node 4 Public Information Security
Policy
Node 4 Accreditations
Payment Currency £GBP
Key Contact Information
Name Michael Ord
Title New Business & Marketing Director
Telephone Number 0114 282 3338
Mobile Number 07720 678 141
Email Address michael.ord@qualsys.co.uk
Website http://www.eqms.co.uk
Blog http://quality.eqms.co.uk/blog
Accounts Payable Contact Information
Name Sarah Bentley
Title Office Manager
Telephone Number 0114 282 3338
Email Address Sarah.bentley@qualsys.co.uk
Remittance Email
Address
Qualsys Ltd,
Aizlewood’s Mill, Nursery Street,
Sheffield, United Kingdom, S3 8GG

30. Bank Details
Bank Name: Barclays Bank PLC
Address: South Yorkshire Corporate Banking
Centre
PO Box 1385, 2 Arena Court
Sheffield, S9 2WU
Account Name: Qualsys Ltd
Account Number: 20-76-89 / 60583332
Swift Code: BARCGB22
IBAN Number: GB68BARC 2076 8960 5833 32
Qualsys Ltd Policies
Quality Policy Policy
Environmental Policy Policy
Health and Safety Policy Policy
Information Security Policy Policy
Risk Management Policy Policy
Equal Opportunities Policy Policy
Ethical Statement Statement
Standard Terms & Conditions
EQMS Software Licence - Perpetual EQMS Software Licence - Perpetual
EQMS Subscription Agreement - Annual EQMS Subscription Agreement - Annual
Support & Maintenance Agreement Support & Maintenance Agreement
Payment Terms
 Software Licences - In advance of installation, on receipt of Qualsys’ invoice
 Support and Maintenance Services - Annually in advance, on receipt of Qualsys’
invoice
 Subscription and Hosting Services - Monthly in advance, on receipt of Qualsys’
invoice
 Software Development Services - 50% in advance, 50% on delivery
 All other services - 14 days from receipt of Qualsys’ invoice (professional services
will be invoiced weekly, all services must be called off within 12 months of the
date of order.)

31. IT – Technical Requirements
Server & Technical Requirements Customer Site Survey Form
Buying Tools – including Datasheets, Buy vs Build etc. EQMS Buying Toolkit
Signed for and on behalf of Qualsys Ltd
Signature Print Name Michael Ord
Date 15/02/16 Position New Business & Marketing Director

32. SUMMARY
• Suppliers are an extension of your business.
• Senior management must understand supplier risk.
• Reassessment is just as important as supplier on-
boarding.
• Transparency, visibility and traceability are essential.
Quality
Culture
Enablers
Supporting Systems
Hierarchy for a Robust and Intuitive Supplier
Management System
QMS Processes Technology Tools
Competency Commitment
Understanding
Values

33. QUESTIONS?

34. FURTHER INFORMATION
• EQMS Datasheets for
• Supplier Manager
• Audit & Inspection Manager
• Issue Manager
• Document Manager
• Risk Manager
• Qualsys Supplier Information Form
• Survey Results Analysis.
• Replay Webinar.
• Supplier Buying Form
• Library of Articles on Supplier Performance Management.

35. FURTHER HELP & SUPPORT
Qualsys Limited
Aizlewoods Mill,
Nursery Street,
Sheffield,
S3 8GG
emily.hill@qualsys.co.uk
+44 (0)114 282 3338
robert.oakley@qualsys.co.uk
+44 (0)7919 005538
mike.bendall@qualsys.co.uk
+44 (0)7770 866268