Irrespective of how evolved your supply chain is – supplier qualification, re-qualification, onboarding and continuous improvement (CI) are critical elements of supply chain management. Qualifying and onboarding the right suppliers is fundamental for your supply chain success. The key is to automate the entire process, ensuring your ecosystem of suppliers meets your “clearly defined” expectations.
A Risk-Based Approach to Supplier Management
At ComplianceQuest, our supplier management solution not only automates quality and compliance processes but also helps with risk management. We notice that our clients clearly segregate their suppliers into various risk categories – critical, high-risk, medium-risk and low-risk suppliers.
Ideally, you must shortlist suppliers across these risk categories, keeping in mind the criticality of the product. This risk-based approach to shortlisting is a critical step to getting your supply chain right.
Remember, supplier qualification and onboarding are not a one-time effort. Periodic audits, regular collaboration, and communication are part of a strategic supplier partnership. This is especially true for suppliers in the top three risk categories – critical, high risk, and medium risk.
As the VP of Supply Chain of a Global Lifesciences Company that works with ComplianceQuest mentioned to us once, “There is no point in finding problems in the supply chain too late and it is extremely expensive.” The key is to continuously assess, monitor and improve.
In this Whitepaper, we present a 6-step approach to design and implement a robust supplier qualification and onboarding process that is customized for your context.