Over 1800 senior executives and quality professionals were interviewed as part of a global Forbes Insights report. The focus relates to the links between quality efforts and corporate performance, as well as the evolving business value of quality.
Our interest in this report was piqued when we noted that of those surveyed, 58% of senior executives and 43% of quality professionals identified quality issues with suppliers as a Most Vexing Yet-to-Be-Resolved or Ongoing Quality Issue.
Less aligned, 57% of senior executives and only 25% of quality professionals also identified delays from suppliers in product or service delays as an ongoing issue.
Of course, we believe that issues identified with suppliers are effectively addressed through the process of careful selection and continuous development/improvement. We offer solutions and resources for organizations to mitigate many of the issues commonly noted.
Additional highlights from the Forbes Insights report include:
The estimated annual cost of yet-to-be resolved or ongoing quality-related issues is 1-5% of revenue for 30% of the total surveyed. For 20%, it's more than 10% of revenue.
37% of established organizations formally and extensively measure the impact of quality, in comparison to 10% for struggling organizations.
Customer demand for quality saw the highest total (67%) within the Top 10 Enterprise Quality Drivers. Other top rated drivers include brand reputation reliability, customer value, profitability, brand value, and competitive differentiation.
Within the Top 10 Business Areas Touched by Quality Initiatives, "production" was identified by 56% of established organizations in comparison to only 39% of struggling organizations. 48% of established organizations identified "supplier management," in comparison to 27% of those identified as struggling.
Almost 60% of all survey respondents report their quality management efforts involve operations, and 52% say customer service is part of their quality efforts. Half say quality is part of their production efforts.
Close to half of senior executives and quality professionals in this survey report that their quality efforts have increased profitability. A total of 47% attribute profitability growth to their continuous improvement efforts. One in five credit significant growth, exceeding 5% in the most recent year.
It is noted here that "quality may be the essential ingredient that transforms today's uncertainty into profitability." And, with all survey respondents indicating they see a direct connection between the success of their quality initiatives and the success of the entire organization, we whole-heartedly accept the challenge and opportunity associated with helping companies reduce their associated risk and cost.
Read the complete Forbes Insights report here.
Contact us directly for additional information regarding supplier selection and development solutions.