The supply chain’s view of quality

– “The biggest cost of poor quality “is when your customer buys it from someone else “because they didn’t like yours.” With this thought, D. Edwards Deming is right on target. To succeed in business, you must meet your customers’ expectations for quality products and services. That requires an understanding of quality throughout your supply chain, not just your company’s view of quality but also an understanding of how your customers and your suppliers view quality. First, let’s talk about your customers. Your customer expects you to do exactly what you agreed to do, no exceptions. Meet this exception and your customer will view you as a quality supplier and will return for more business. Simply put, don’t give your customer something to complain about. Make good products, deliver them on time to the right place in the right amount. And of course, make sure you’re charging a fair price. But what about your suppliers? How do they view quality? Your supplier is looking for several things from you. Most importantly, they want a clear understanding of your expectations. For example, your contract should specifically state your product and service needs. Suppliers have to know your exceptions in order to meet them. Your suppliers also want a reasonable amount of time to fill your order. and prevent stress on your supplier’s factory. When I worked for a large high-tech company, we were really good at placing orders on time. We earned preferred customer status with several suppliers. Plus, your suppliers want you to be easy to do business with. Their view of quality includes efficient and streamlined processes. For example, make the bidding process for your contracts as simple as possible. And, they want support when they need it. When problems arise, both teams should work together to find a solution. Toyota serves as a classic example. They’re renowned for sending engineering teams to a supplier’s factory to help solve a production problem. Do these four things and your suppliers will view you as a quality customer and a key partner. They’ll want to do business with you. Notice that most companies play both roles in this business relationship. You’re a supplier to your customers and a customer to your suppliers. An effective quality management program keeps an eye on both of these perspectives. It’s well worth your time to explore this area. Write down the quality goal of your organization. Does it reflect your customers’ and your suppliers’ perspective of quality? If not, it may be time for a revision. If not, it may be time for a revision.