Project quality with global reach
September 12, 2013
With companies outsourcing their manufacturing to strategic partners across the globe, the supply chains have become very long. Many consumer products are manufactured in the Far East and then shipped to Australian markets using multiple logistics providers via ocean, air and trucks. It can take weeks for a finished product to reach the store shelves from a supplier in the Far East. In addition, many of these manufacturers have streamlined their supply chain and implemented lean inventory techniques. As a result, any issue in supplier quality can quickly result in stock outs.
Companies that sell industrial products need to preserve their preferred supplier status to continue to be considered for future business. As a result, they are under pressure to ensure that their products continue to meet or exceed acceptable PPM and Corrective Action thresholds set by their customers. Hence, managing their own supplier’s quality is very high on the agenda for these companies.