The definition of supplier quality management is more complex today than it has been in the past. Adopting ISO standards and ensuring that your suppliers are meeting requirements is just the beginning of an effective management program. Organizations that will remain competitive and survive in today’s tough economy will be doing much more.

The fact is survival in today’s economic climate requires companies to develop a strategy to aggressively manage cost and increase value to the customer. This involves working closely with suppliers to help them become leaner, and developing a mutually beneficial relationship. The fundamental concepts of lean manufacturing that were created 50 years ago are emerging as an important method of achieving competitive advantage in the 21st century.

Supply chain management is making use of a growing body of tools and techniques to help with this effort. Helping the supply chain get lean involves targeting the areas with the biggest potential return on investment, managing the process, identifying factors critical to success and then evaluating progress and performance. Tools to help monitor and improve production performance are becoming must-haves, and are readily accessible through a browser-based interface.

The most sought after and rewarding benefit of leaning the supply chain is the cost savings that result from reductions in inventory. Inventory is reduced by increasing the speed at which materials move through the supply chain, and by reducing safety stock levels. Other benefits include reduction in supplier redundancy, less waste, lower cost manufacturing operations and increased competitiveness and profitability.

There are several factors which are critical to successful supply chain integration, such as a full commitment by management, a clear understanding of benefits for all involved, effective use of appropriate technology and organizational buy-in. The fact is that the successful companies of the our time will be the ones who place importance on supply chain development and aggressively and strategically pursue strategies to build a leaner supply chain, and ultimately, a leaner, more competitive company.

Cambridge Journals
In line with the commitment of Cambridge University Press to advance learning, knowledge and research worldwide, the Press currently publishes over 220 peer-reviewed academic journals for the global market.

Manufacturing.gov
The Manufacturing.gov website is dedicated to providing the most comprehensive, and current information on issues surrounding the competitiveness of American manufacturers.