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Work Smarter : Development of a Global Supplier Quality Manual

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global supplier quality manual Sandalwood

Problem

Starting a new job is always an exciting proposition, especially when you’ve been hired to create a brand new, global Quality Organization!  You’ll probably start out with:

  • A decentralized organization
  • A blank process and procedure canvas
  • No staff
  • A budget torn from the company’s many operating divisions.

Where do you begin?  Well, if you’re like one of our favorite clients, one of your 1st calls will be to Sandalwood!

A hallmark of a great leader is his/her ability to effectively communicate significant changes in policies and standards of governance to:

  • Employees
  • Service partners
  • The global supply base

Insuring a smooth implementation of these polices is a cornerstone strategy to improving the capability of its supply base as well as reducing costs and supply chain risk.  Sandalwood was given the task of creating and implementing such a communication mechanism:  A Global Supplier Quality Manual.

Premise

The Global Supplier Quality Manual was collaboratively designed to address the following business methods and processes:

  • New Product and Process Development
  • Process Validation and Capability
  • Capacity Planning and Delivery
  • Preventive/Corrective Actions
  • Change Management
  • Supplier Assessments
  • Key Process Indicators (KPi’s)

Challenges

Although the challenges were many, the combined Client and Sandalwood team successfully addressed the following:

  • Decentralized internal organization
  • Internal resources residing in multiple regions
  • Lack of global standards
  • Large global supply base – five regions (NA, South America, EU, MEA, and Asia)
  • Regional supplier governance owned by regions – not aligned globally
  • Varied levels of supply base maturity
  • Culture and language barriers

Global Supplier Quality Manual

In developing the solution to the concerns mentioned above, the exercise started with:

  • Consolidating control under a centralized supplier development function
  • Moving to “center-led” governance for policies, procedures and standards development.

The Global Supplier Quality Manual was developed to communicate the high-level expectations to each global supplier in a consistent manner.  Agreeing to the execution of the Global Supplier Quality Manual became part of a supplier’s contractual agreement.

Success!

Suppliers were able to gain clarity from the Global Supplier Quality Manual:

  • Expectations were established from the up-front auditing process
  • Discipline was maintained from onsite assessments and site-level audits.
  • Continuity was assured through reassessments (once every three years
  • Self-Assessment was possible once scores were confirmed
  • Continuous Improvement came into effect as the client continued to meet with key suppliers to discuss the business requirements and improve and tweak those requirements as desired.

Benefits

The benefits of developing and deploying the Global Supplier Quality Manual were evident both to the manufacturer and the global suppliers almost immediately!

  • Clarification of customer expectations to it’s supply base
  • Establishing a set of standards for suppliers to use
  • Eliminating ambiguity and process waste for both customer and supplier
  • Establishing alignment to internal policies, procedures and standards
  • Reducing supplier product development times
  • Improving supplier launch readiness
  • Reducing supplier PCA lead-times
  • Cost reductions driven by improved supplier quality performance were among some of the benefits.  These benefits led to an overall performance improvement in APQP, PPAP, launch discipline, incoming quality and cost.

 

Would you like to discuss how implementing a Global Supplier Quality Manual can help you and your customers?  Contact us today!

 

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Posted on

November 10, 2020

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