1

Quality in the Supply Chain

Rob Burton - Intertek

2

Quality in the Supply Chain

Supply Chain elements……..

FACTORIES

FACTORY WAREHOUSE SHIP WAREHOUSE

STORES

Quality Management System

3

Changing Environment……….. New manufacturing locations More direct sourcing Buyers demand shorter lead times Buyers look for shorter supply chains Protecting the Brand

“Who adds value to my supply chain?”

Quality in the Supply Chain

4

Product Safety and Quality

Safety is non-negotiable Quality is variable

Quality in the Supply Chain

5

Product Quality, Cost and Value

Quality in the Supply Chain

Quality Cost

Value =

Add cost, the value goes down

6

Quality Assurance vs Quality Control

“Prevention or cure”? Which services add value:

- Audits?- Testing?- Inspections?

“You cannot inspect quality in to a product!”

Quality in the Supply Chain

7

First Party, Second Party, Third Party…

Quality in the Supply Chain

- Buyer does QA- Seller does QA- A Third Party does QA

Who adds value? Who do you trust?

8

Audit the Supply Chain Can you trust ISO 9000? (No !!) Who to audit:

- Supplier- Vendor- Factory

Audit UP the supply chain!

Quality in the Supply Chain

9

Audit the Supply Chain The target is reduced Interventions;

less testing, less inspections- Reduces cost- Saves time- Improves buyer/vendor relationships

Quality in the Supply Chain

10

Can you out-source Quality Management?

Quality Management Strategy should be internal

Everything else can be out-sourced Who has decision making accountability? Who is liable when things go wrong!?

Quality in the Supply Chain