I hope that you have enjoyed the article “A 12-Point Supplier Quality Checklist.”
These checklist points were summarized from our comprehensive new online course “Improving Quality in the Supply Chain.” One of my favorite items from the checklist is “The supplier has quality performance goals.”
Just like typical procurement KPI’s, the quality function has a variety of KPI’s to choose from – and some are better than others. I did a quick Google search and found a variety of quality KPI’s at all ends of the spectrum. Just look at these few examples adapted from smartkpis.com to see how wide-ranging quality KPI’s can be:
- Rework cost as % of total manufacturing cost
- Cost of rejected materials
- Administrative error cost as % of revenue
With the wealth of examples out there, it is almost unfathomable that you won’t be able to “check the box” for the checklist item mentioned. Sadly, it is true.
However, if you increasingly ask about quality KPI’s when doing RFP’s, make having them a requirement of doing business, and encourage your existing suppliers to track and report their quality KPI’s, fewer suppliers will ignore this key element of being a continuously improving business. And, the best part is that your organization will benefit from better supplier quality.