Category: Supply chain

Global Supply Chains are Changing Fast & Creating New Quality Challenges

Our latest newsletter featured an article written by Pro QC’s VP/Americas, Michael L. Hetzel.  In the article, Michael expands on the ideas he presented in a recent interview with Awarely regarding trends in logistics and supply.  The original article is posted below. “Finally, product simplification/modularization/mass customization will dictate short supply chains and inventory reductions. Manufacturing in proximity to each market becomes the lowest cost option.” The above quote is from an article I wrote that was published in the January-February, 2007, issue of Mexico Now magazine, titled; ‘Avoid Strategic Overshoot©: Consider All Elements Before Moving Production Outside the U.S.’ This …

Using a Grid Analysis for Supplier Selection

An article was published in MasterControl’s November newsletter that simplifies the process of supplier selection.  A grid analysis is great for almost any decision-making situation where you want to objectively compare multiple options.  It also complements many other decision-making tools as well. Per the article, factors that should be considered in the grid analysis for supplier selection may include: Cost – Initial quotations and negotiations are not always representative of future costs.    However, this is certainly an important competitive advantage if that’s the desired positioning.  Contractual commitments should be discussed to avoid incremental increases. Quality/Standards – Depending on the industry, specific supplier …

Supplier partnerships are key

Many organizations approach us and are currently in volatile partnerships with suppliers over missed deadlines or unacceptable quality.  Communication has broken down, and both parties are unclear of how to proceed and ensure customer value. The key to accomplishing objectives and mutually realizing benefits from continuous improvement initiatives is through cooperation and understanding from all party’s perspectives. Supplier partnerships work best when the following is incorporated: Transparency – It is important that information is shared with all parties in order to expedite resolutions and brainstorm long-term solutions. Dependable Payment Terms & Service Delivery – Payments should be made in a …

Managing quality in long distance supply chains

Michael L. Hetzel, Pro QC’s VP/Americas, partnered with GlobalAutoIndustry earlier today to share some insight and recommendations regarding managing quality in long-distance supply chains. The seminar, which was hosted by GlobalAutoIndustry.com, touched on a wide range of quality challenges unique to those engaged in international procurement.  Michael reviews the cost issues and various considerations for selecting capable and ethical suppliers.  In addition, he incorporates important quality tools necessary for assessing and verifying conformance.  He discusses the considerations for using local staff or 3rd party quality providers as a way to monitor and ensure continuous improvement. After the seminar, one of the …

Supply chain management basics

I recently stumbled on a series of videos produced by Arizona State University and the W.P Carey School of Business’ Department of Supply Chain Management (ASU-WPC-SCM) relating to the basics of SCM.  While basic in nature, the series is well organized and appears to piece together SCM quite well.  As a refresher, I think these videos are excellent idea generators. There are twelve modules, with topics ranging from social responsibility, manufacturing & operations, logistics and metrics.  Module eleven relates to quality management and is quite succinct.