[Infographic] Top 10 Reasons Supplier Qualification Fails
Are you struggling to prequalify your supply chain? Is it difficult to identify different risks and put a solid plan in place? How does brand protection influence your company standards, practices, and shareholders?
Every business or operation needs to identify critical risk and put a plan in place to control and mitigate that risk. Pre-qualifying a supply chain can be the first step. Risk can be mitigated within a company through implementing a supplier qualification process.
Below are the top 10 reasons why supplier qualification fails, and 10 additional ways to ensure success, protect your company brand, and add shareholder value.
#1: Lack of Leadership Commitment: The most successful programs have executive leadership and a champion to push the process through and guarantee success.
#2: Not Understanding Internal Stakeholder Needs: Internal and external stakeholders need to be included in the process of supplier qualification. The program must meet the needs of the stakeholders without being onerous on the contractors.
#3: Ineffective Communication: Most members of the supply chain are eager to meet the needs of their employers, helping them to understand the “whys” will ensure success.
#4: Lack of Supply Chain Buy-In: As internal stakeholders and supply chain members understand the expectations of a qualification program, they become vested in the process and are more likely to participate.
#5: Poorly Defined or Inappropriate Standards: Having poorly defined or inappropriate standards is something that should be resolved within the first stages of implementation. It is best to keep standards both simple and defined.
#6: Poor Enforcement: The integrity of the business and brand protection depends on equal enforcement. Enforcement requires clear communication and enforcement across the board.
#7: Contractor/ Supplier Refusal: If positioned correctly, suppliers will likely see this as a benefit and as a tool to set themselves apart from the competition.
#8: Lack of Sophisticated Technology: With a more sophisticated technology in place, the system can be streamlined and the use of automated processes will help the program run more smoothly.
#9: Understanding the Need for Administrative Support: Managing a program in-house requires a significant amount of administrative support. Resources must be identified early in the process and are best implemented through training, communication, and a shared value in the program.
#10: Static Compliance Management: Compliance is more than a one-time event and must be proactively managed. A program’s success depends on striving for continuous improvement and incorporation of best practices.
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