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Supply Chain Control Best Practices

9/10/2014

 
One of the requirements of the new API Q2 standard deals with supplier quality management. Organizations, both large and small, have been spending time, talent and resources to address the supply chain control provisions outlined in the new standard.

To help focus efforts, we have outlined a number of best practices related to supply chain control:

1.      Identify a list of metrics and KPI’s that are important to monitor at your organization

Key performance indicators and defined metrics are important to monitor because most companies are dependent on suppliers and the global supplier network makes it difficult to manage and track supplier performance. As a result, failure to manage and monitor supplier performance can lead to major supply chain disruptions, delivery problems, poor quality, and other issues that damage a company’s credibility, as well as the bottom line. 

2.      Measure and track costs of supplier quality

Tracking the costs associated with supplier quality helps to determine business productivity and measure the impacts associated with doing business with a supplier.  By tracking costs, companies reduce risk associated with doing business with certain suppliers, maintain a competitive business advantage, and track ROI.  

3.      Maintain a corrective action plan

Maintaining a corrective action or preventative action plan is very important in dealing with any potential problems or future incidents. The results of the corrective action process should be to implement a corrective action to remove identified problems, improve product quality and improve the overall effectiveness of the quality management system.

4.      Create a supplier risk scorecard

Companies can configure a scorecard to meet specific needs. Set thresholds for acceptable, moderate, and severe risk levels. With multiple categories to choose from, companies can measure and view overall supplier risk.

5.      Maintain a collaborative environment and enforce supply chain audits

With so many different and new suppliers in the oil and gas industry, the risk associated with doing business has increased and it is more important than ever to reduce that risk in the supply chain by increasing the number, frequency, and duration of audits performed. By maintaining awareness and collaboration creates effective relationships to minimize and track risk.

Accupoint’s family of compliance solutions help track all of the best practices suggested above.  Supplier information and data can be entered and analyzed from any web enabled device, via the cloud.  To find out how Accupoint Software can help your organization implement effective supply chain controls, give us a call at 800.563.6250 or visit us at www.accupointsoftware.com


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