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Quality in the Supply Chain Rob Burton - Intertek. Quality in the Supply Chain. Supply Chain elements……. FACTORY. WAREHOUSE. SHIP. WAREHOUSE. FACTORIES. STORES. Quality Management System. Changing Environment……….. New manufacturing locations More direct sourcing
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Quality in the Supply Chain Supply Chain elements…….. FACTORY WAREHOUSE SHIP WAREHOUSE FACTORIES STORES Quality Management System
Changing Environment……….. New manufacturing locations More direct sourcing Buyers demand shorter lead times Buyers look for shorter supply chains Protecting the Brand “Who adds value to my supply chain?” Quality in the Supply Chain
Product Safety and Quality Safety is non-negotiable Quality is variable Quality in the Supply Chain
Product Quality, Cost and Value Quality Cost Value = Quality in the Supply Chain • Add cost, the value goes down
Quality Assurance vs Quality Control “Prevention or cure”? Which services add value: - Audits? - Testing? - Inspections? “You cannot inspect quality in to a product!” Quality in the Supply Chain
First Party, Second Party, Third Party… Quality in the Supply Chain - Buyer does QA - Seller does QA - A Third Party does QA • Who adds value? • Who do you trust?
Audit the Supply Chain Can you trust ISO 9000? (No !!) Who to audit: Supplier Vendor Factory Audit UP the supply chain! Quality in the Supply Chain
Audit the Supply Chain The target is reduced Interventions; less testing, less inspections Reduces cost Saves time Improves buyer/vendor relationships Quality in the Supply Chain
Quality in the Supply Chain Can you out-source Quality Management? • Quality Management Strategy should be internal • Everything else can be out-sourced • Who has decision making accountability? • Who is liable when things go wrong!?