10 Ways to Improve Supply Chain Resilience with the ComplianceQuest EQMS Solution
The United States government recently released an executive order to improve supplier resilience, diversity, and security to ensure economic prosperity and national security. This will help the American economy to withstand disruptions from pandemics and other threats including biological, cyber, environmental, and political issues.
For companies in sectors like manufacturing and life sciences, the lack of a robust supply chain that cannot withstand the test of such disruptions is a major challenge. In the automotive industry, for instance, the lack of availability of chips has seriously delayed the manufacturing cycle of automotive OEMs, directly impacting revenue growth.
The question is – how can we make our supply chains more robust? Can we revitalize and rebuild domestic manufacturing capacity?
A McKinsey podcast titled "Getting Ahead of Supply-chain Risks" highlighted the need for manufacturers to measure reliability and availability as two key factors to consider while they choose their suppliers.
At ComplianceQuest, we published an e-book titled "The Ultimate Guide to Next-Generation Supplier Management." The e-book focused on why the time has come to fundamentally rethink supplier relationships. In today’s competitive and dynamic marketplace, it is imperative to build strategic relationships with your suppliers, ideally for the long term.
The first step to a long-lasting relationship is ensuring your organization has a robust supplier qualification and onboarding process. Once supplier partnerships are forged, the next step is to automate the entire process of supplier management with a deep focus on supplier quality. Finally, it is imperative to build a robust supplier performance management workflow with the support of the right digital tools.
A major challenge is the lack of data, especially from tier-2, -3, and -4 suppliers who are wary of sharing data, often citing trade secrets as a reason. This makes it difficult to run a data-driven supplier management process, which is the first step in building a reliable supplier network.
The need of the hour is a robust next-generation supplier management solution that integrates with the rest of the EQMS. This, along with integrated risk management and ongoing supplier performance, will make big difference to any enterprise.
Supplier Management Software for Resilience and Reliability
With CQ’s Supplier Management Software, you can take control of your Supplier Quality across all locations, by assessing and qualifying, on-boarding, interacting, collaborating, escalating, measuring, and monitoring the performance of your suppliers. This is made possible by the following features and capabilities:
- Integrated Risk Management: When a supplier-related risk is identified, it is critical that the company acts proactively to mitigate any risks and kickstart a change management process. This can be anything from new training to be given to the supplier or even replacing a supplier. The key here is to spot supply chain risks ahead of time (if possible) and bring together relevant stakeholders to tackle issues without wasting any time. With a modern solution like ComplianceQuest’s Supplier Management Solution, all of this becomes completely digitalized.
- Rate and Score Suppliers: Based on the risk assessment, score the suppliers to understand which of these are critical to the business, what is the risk associated with them, and how will it impact the business? Can these be mitigated or are there ways to overcome them with minimum disruption? What about finding alternative suppliers? By using data and metrics to drive supplier decision-making, we remove bias from the equation.
- Map the Complete Supply Chain: Often, businesses may have visibility up to the tier 2 level, but beyond that, there could be hidden risks such as sourcing from a single supplier. By mapping the entire supply chain, businesses can identify the risks and put controls in place.
- Create an Approved Supplier List (ASL): ASLs are important for businesses to build resilience in the supply chain. They should have fallback options in case of any disruptions or delays in the current supply chain. The list should be periodically reviewed and updated.
- Communication and Collaboration: The CQ supplier management software enables communication and collaboration from within the system. This helps exchange documents, manage change and deviation requests, and collaborate for innovation. The system provides visibility, enabling tracking and monitoring of processes while allowing retracing steps in case of any problems. This helps with root cause analysis and CAPA to address problems more efficiently.
- Document Exchange: Documents form an essential part of the supplier relationship and is also essential for regulatory compliance. Paper documents can be hard to maintain and share, with multiple versions causing confusion and leading to errors. CQ provides a secure way to share, distribute, track, and control access to the latest versions of documents.
- Robust Supplier Audits: Auditing is an important part of quality management and the CQ solution facilitates audit management of suppliers. Any findings can be shared and action taken tracked to ensure closure and compliance/conformance.
- Reporting and Analytics: The solution links to enterprise systems such as ERP and SCM. This provides secure access to enterprise-wide data in one place to generate reports and run analytics. Dynamic dashboards help to identify trends and issues. This can help with CAPA to correct problems and prevent future recurrence.
- Production Part Approval Process (PPAP): The PPAP feature in the CQ supplier management system helps reduce the risk of nonconforming products and delays by managing new parts/material and change requests by involving the suppliers in the process.
- Permit-to-Work: This helps with ensuring that only authorized contractors and partners (who are also key suppliers) with the right skills and qualifications work in high-risk areas. This minimizes safety risks and improves the quality of the process.
End-to-end management of suppliers using automated workflows improves efficiency, scalability, and resilience of the organization. Since the ComplianceQuest Supplier Management Solution is integrated closely with EQMS, the data is also accessible to senior management for reviews and informed decision-making. Being cloud-based, the system makes it easy to work with suppliers across the globe and manage compliance with local regulations.
The solution is also mobile-ready, providing permission-based access to authorized personnel anywhere, any time, for seamless business continuity.
To know more about how you can make your supply chain more resilient and robust, visit: https://www.compliancequest.com/supplier-management-software/
We conducted an in-depth study to assess the maturity of supplier quality programs and digital transformation in manufacturers across the world. Our goal was to understand how companies are managing their suppliers and what they are doing to better reap its rewards.
Don’t ignore this powerful way to gain insight into your company’s supplier quality program maturity. Get this in-depth and comprehensive industry analysis report here: https://www.compliancequest.com/whitepaper/2nd-supplier-quality-benchmark-report/
Request a demo: https://www.compliancequest.com/lp/supplier-management-solution/