Webinar SQM Best Practices and Insights
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Here is a webinar to help organizations increase their supply chain efficiency with comprehensive supplier quality management insights.
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Webinar SQM Best Practices and Insights
- 1. Supplier Quality Management Best Practices and Practical Insights for 2015
- 2. The impact of poor quality 2 product recall increase 1999-20111+135% 1 Recall Execution Effectiveness Report. Deloitte, GMA, FMI and GS1. May 2010 2 raps.org, A. Gaffney, “Number of Drug Recalls Surges at FDA, Led by Mid-Level Concerns”, August 2014 6x FDA drug recall increase 2004-20132
- 3. The impact of poor quality 3 $90M A product recall can cost an organization between1 $10M 1 Recall Execution Effectiveness Report. Deloitte, GMA, FMI and GS1. May 2010 52% recalls due to supplier/vendor issues1
- 4. Let’s do the math 4 Drug recalls in 20131 1225 1 raps.org, A. Gaffney, “Number of Drug Recalls Surges at FDA, Led by Mid-Level Concerns”, August 2014 Cost per recall $10M to $90M Cost of drug recalls in 2013 $12B to $110B X
- 5. Let’s do the math 5 Cost of drug recalls in 2013 $12B to $110B 52% of recalls due to suppliers/vendors $6B to $55B 1% $60M to $550MWhat if improving supplier visibility & quality reduced recalls by… 5% $300M to $2.75B
- 6. Industry challenge: Identifying Quality Issues Early 6 1X 10X 100X 1000X… Issue Resolution Cost Supplier Network Corporate Planning & Design Manufacturing Facilities Distribution Centers Consumers Only 22%of companies see quality as an integrated function of their supply chains1. 1 Gartner, S Jacobson, “Quality: The Missing Link in Your Supply Chain Strategy”, January 2015
- 7. Industry challenge: Supply chain complexity 71 The Supplier Performance Measurement Benchmarking Report, Aberdeen Group, 2002 50-80% of the total product costs are spent on raw materials & parts procured from multiple suppliers across different parts of the globe1
- 8. Industry challenge: Supplier visibility 81KPMG Global Manufacturing Outlook report, 2014 Complete visibility Tier 1, 2 and beyond suppliers visibility Limited visibility Limited Tier 1 supplier visibility, but not Tier 2 & beyond Some visibility Tier 1 supplier visibility & some Tier 2 supplier visibility 22% 38%40% Only 22% of today’s manufacturers have complete visibility into their supply chain1
- 9. Supplier Quality Maturity Framework Mastery of each step leads to improved visibility and quality across the supplier network Level 1 Level 2 Level 3 Level 4 Level 5 Ad-hoc Email communication Fax communication Manual data capture Supplier Scorecard Repeatable Supplier Agreements Electronic data capture & spreadsheets Approved Supplier List Collaborative Quality Network Integration Quality Network Collaboration Quality Network Visibility Historical Performance / Automated Scorecard Automated System Driven Centralized Supplier Management Metrics and KPIs Tier 1 Supplier Collaboration Predictive Insights & Triggered Events Optimized Tier 1 Supplier Visibility
- 10. Best Practices for Managing Quality In the Supply Chain 10 Broaden supplier assessments Enable broader visibility into the supplier network 45% of executives agree the leading challenges to supply chain efficiency include supplier performance and quality management - KPMG Global Manufacturing Outlook report 2013 1
- 11. Establish clear measurement programs Leverage automation tools to support measurement & monitoring of supplier quality Best Practices for Managing Quality In the Supply Chain 11 2 Dynamic Supplier Scorecard Real-Time Consistent Accurate Prioritize Schedule Manage Informed Systematic Efficient Execute Consistent Remediate Integrated Measure Accurate Decisions Complete Measure and Inform Audit Management Audit Execution Audit Planning Supplier Audit Checklist
- 12. Best Practices for Managing Quality In the Supply Chain 12 Invest in infrastructure Enable quality across the supply chain through effective communication of quality events Cloud Computing will play the most important role in IT enabling quality between now & 2017 - Gartner, S Jacobson, “Quality: The Missing Link in Your Supply Chain Strategy”, January 2015 3 Supplier 1 Supplier 2 Supplier 3
- 13. Best Practices for Managing Quality In the Supply Chain 13 Close the quality loop with suppliers Leverage technology to connect & integrate suppliers into quality management processes 4 Quarantine Quality Processes Product Nonconformance Notification Received Supplier Identification Root Cause CAPA Plan Effectiveness Check Issue Identified Notification to Supplier SCAR Reviewed CAPA Approved Action Item Reminders
- 14. Extend quality management practices into the supply chain 14 Visibility - Identify issues early before they become costly quality incidents Traceability - Understand the root cause and source of quality issues in your supply chain Accountability - Ensure supply chain partners understand issues and resolution requirements in a timely manner Profitability - Mitigate quality related financial risk and improve supply chain efficiency
- 15. For more information, visit: www.spartasystems.com