By dividing each supplier score card up
into high and low-risk areas, you can
help drive continuous improvement.
• Be sure audits are up to date.
Depending upon the industry, standard operating procedure (SOP) audits
may be called for every three to five
years, whereas other risk-based audit
procedures call for some suppliers to
be audited once every six months to a
year. This should not be a set-in-stone
frequency – be proactive and trigger
audits based on issues.
• Finally, create a collaborative relationship with your supplier (as opposed
to an adversarial one based around
cost). Removing the emphasis of price
in a supplier relationship and replacing
it with a focus on trust and equality
amongst partners in the supply chain
opens the door to more collaborative
Not only do these tips impact operational
efficiency, but they help to positively impact
a company’s bottom line – due to fewer recalls and eliminating costs associated with
poor quality. In fact, businesses have been
able to present tangible benefits of implementing an EQMS in the first three years of
We are seeing a 32 percent jump in utilization (i.e. reporting events that are effectively investigated and acted upon - driving
quality, safety and reliability). There is also
a seven percent reduction in open records
as they are effectively being addressed and
resolved. And, companies are performing
this with a 44 percent reduction in cycle
times as they are becoming operationally
efficient with a timely resolution leading
to improved cost management and bottom
Proactive prevention is the best lesson companies can learn when it comes
to avoiding a potentially damaging (or
life-threatening) recall. The goal of an
EQMS is to get companies to work smarter.
Automation grants a company a better position to gain greater visibility and efficiency
across the entire supply chain, and not only
does proactively preventing contamination
keep customers happy and healthy, but it improves a company’s top and bottom line. n
Exceptional service is part of the package.
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