The Positive Impact of Supplier Quality Management. Best Practices and Practical Insights for 2015

Transcription

1 The Positive Impact of Supplier Quality Management Best Practices and Practical Insights for 2015

2 Before We Begin If you experience technical problems, please contact GoToMeeting Technical Support at or All attendees are muted upon entry to the event. Please use the question option to send questions at any time during the event. All attendees will receive a copy of today s webinar. 2

3 Today s Presenters Brandon Henning Director, CPG Industry Solutions Sparta Systems Dirk Dusharme Editor in Chief Quality Digest 3

4 What we ll discuss Industry challenges Value of Supplier Quality Management Five SQM best practices that you can do now 4

5 Food & Beverage recalls have increased 135% US experiences 30 class I & II food product recalls per week (USDA). Europe experiences 20 per week (RASFF) 2013 cost to the industry over $150 Billion Dollars PRODUCT RECALLS Recall Execution Effectiveness Report, Deloitte, GMA, FMI, GS1. May 2010

6 52% Incidents are a result of Supplier & Contract Vendor Issues Recall Execution Effectiveness Report, Deloitte, GMA, FMI, GS1. May 2010

7 Industry challenge: Identifying Quality Issues Early Corporate Planning & Design Supplier Network Manufacturing Facilities Distribution Centers Consumers Issue Resolution Cost 1X 10X 100X 1000X Only 22% of companies see quality as an integrated function of their supply chains 1. 1 Gartner, S Jacobson, Quality: The Missing Link in Your Supply Chain Strategy, January

8 Visibility into the supply chain is a growing challenge 65% 80% 51% of CPG companies supply companies chain are partners lack outsourcing visibility help with innovation into their material suppliers

9 The supply chain communication gap due to manual communications Suppliers Manufacturers quality management processes

10 Preventing quality issues in the supply chain, leads to sustained revenue growth! Better manage suppliers Decrease cost of poor quality Drives Operational Excellence Prevent Supply Chain Incidents

11 Good News Same solution that enables Supply Chain collaboration also assists you to reach your Operational Excellence and Top Line Revenue Goals $Value gained from installing supplier quality & internal quality management software Effective Supplier Relationship Management Quality & Process Improvement Production Intelligence Production Execution $90M+ Cost of quality reduced Cost of goods sold decrease NPI time to market increased Overall Equipment Effectiveness (OEE) increased Reduced Average Waste Rate

12 Best Practices to Ensure Supply Chain Quality & Safety

13 1. Establish the Supplier Foundation Record all suppliers and locations ERP Vendor Perform site audits, submit findings & review Corrective Actions Supplier Who supplies us? Site Where does it come from? Are we compliant? What s next, overdue, pending follow up? Audits Findings / Actions BENEFITS: Reduce risk of supply chain incidents Centralize supplier information Manage cost of audits

14 2. Supplier Onboarding Manage certifications and agreements Supplier Site Certifications Questionnaires Material Qualification Ingredient/Ingredient Spec Version to Supplier Site Mapping BENEFITS: Brand protection & corporate social responsibility Reduce scrap and waste Ingredient Ingredient Spec Questionnaires to assess risk Audits for ingredient risk Category / subcategory Status Conditionally approved Fully approved Link to spec and spec version What new ingredients need to be qualified? What new sites need to be on boarded? What sites provide what ingredients? Reduce new product time to market

15 3. Supplier Verification Manage the complex relationship between supplier sites ingredients and manufacturing sites What supplier sites can supply what manufacturing sites? What supplier sites are impacted by a change to this version of the spec? Manage supplier certificates & documents Communicate BOM & ingredient spec changes efficiently BENEFITS: Reduce Cost of Good Sold Reduced Cost of Quality Manage risk and change effectively Supplier Site Ingredient Ingredient Spec Mfg Site A Mfg Site B Mfg Site N Supplier driven Driven by R&D

16 4. Integrated Incident Management Supplier Event Management Incident, Investigations Complaints related to supplier materials Supplier Performance On time delivery COA Issues & Defects Product to spec adherence Supplier NC / Event Internal NC / Event End to End Incident Mgmt Market Complaint Customer/consumer complaint Supply chain defect (i.e. delivery issue, qty, recall, etc.) Ingredient quality issue (i.e. COA, IQA Test, etc.) Manufacturing run issue Supplier Risk Updates BENEFITS: Reduce cost of raw materials Reduce raw material variability Improve yields Increase supply chain reliability Supplier Site X Stratus Portal Investigation Corrective actions Resolution / closure Supplier Contact

17 5. Real-Time Performance View supplier & internal performance reports Monitor complaints, quality and risk analytics BENEFITS: Continuous supplier improvement and collaboration Operational productivity Reduce audit and oversight costs Improved operational and NPI performace

18 Benefits of extending quality management into the supply chain Increased visibility Improved operational efficiency Enhanced accountability Product safety & compliance

19 Sparta Systems empowers the Quality Ecosystem Stratas Visibility across the value chain Audits on the Go Inside the facility and within supplier facilities Food & Beverage Quality System TrackWise EQMS Harmonized set of quality management modules (SQM, Complaints, Incidents & Investigation, Nonconformance, Corrective Action) Analytics Identify issues & trends earlier Mobile Approve & close issues on the road

20 Questions