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Taking Control of Supplier Quality

Five best practices for implementing a successful supplier governance program

Gerard Pearce
Phil Jamison
Fri, 12/07/2012 - 09:53
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The vital supply chain networks used by companies are expanding and evolving at an unprecedented pace. At the same time, companies face enormous pressures to improve supply chain efficiency, reduce costs, and mitigate the risks involved in supplier compliance with organizational policies, codes of conduct, regulations, and even local laws.

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Companies must consider and manage a variety of supplier engagement activities, understand and evaluate supply chain dependencies, proactively exchange supplier information in a more collaborative environment, and make more informed decisions based on the resultant data or “supplier intelligence.”

The concept of supplier governance represents a growing challenge for organizations, especially those that deal with hundreds or even thousands of suppliers around the globe. There are many different supplier control frameworks and methodologies. Achieving effective supplier control requires a fresh look at the people, processes, and technology involved. The new global standard for supplier governance is an agile, multifaceted model composed of disciplined processes, optimized key resources, versatile tools, and complete stakeholder visibility.

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