Supply Base Excellence: How Top Companies Drive Supplier Quality and Performance

CHAPEL HILL, N.C., April 28 -- Increasingly, supply chain executives are starting to take a fresh look at their supplier quality management process. Now more than ever, rather than viewing quality management tactics such as supplier certification as an end in themselves, leading organizations are viewing them as means for achieving key performance results and strategic objectives. For instance, Edy's Ice Cream instituted a supplier certification program that emphasizes product safety and consistency. In this program, the plant quality manager works with employees from the supplier to examine and improve the supplier's processes. As a result of this initiative the plant reported seeing an additional 4% reduction in annual customer complaint rates.

From instituting solid vendor selection standards to deploying robust rewards and recognition programs, savvy supply chain executives continuously strive to drive and sustain superior supplier performance. Best Practices in Supply Base Management, a benchmarking report by Best Practices, LLC, highlights proven practices of more than 150 world-class companies. Available online -- with a complimentary summary at http://www3.best-in-class.com/rr558.htm -- this report benchmarks cross- industry best practices of leading companies across the complete supplier management process: vendor selection, movement technology selection and implementation, vendor relationship management and performance.

  For example, the following sample insights emerged from this research:
   - In the pursuit of QS-9000 certification, suppliers generally spend
     $20K-$50K on the certification process, depending on the size and
     operations involved at the site being registered. However, suppliers
     gain significantly more return on their investment -- $10 in benefits
     for every $1 spent on achieving certification.
   - A leading sporting goods company worked with its suppliers to
     incorporate a just-in-time focus, complimenting its own controlled
     processes. As a result, the company improved its inventory turns from
     6.5 to 85 over a seven-year period. In addition, the inventory held by
     its suppliers also decreased by over $1 million.
   - Another top company implemented its Supplier Certification Program with
     an objective to identify suppliers with excellent performance and
     process controls and assist suppliers in getting their processes under
     control through training and process reviews. As a result, the company
     was able to eliminate the incoming inspection process for the part
     numbers that were certified.

Drawn from research and interviews of more than 150 leading companies, the findings from this study will help executives in achieving two ultimate business goals: reducing costs and fostering productive relationships.

Download a complimentary research excerpt containing sample supply base best practices from at http://www3.best-in-class.com/rr558.htm .

For more information about our products and services, call James Toomer at (919) 403-0251 ext. 278 or email jtoomer@best-in-class.com .

ABOUT BEST PRACTICES, LLC

Best Practices, LLC conducts work based on the principle that organizations can chart a course to superior economic performance by studying the best business practices, operating tactics and winning strategies of world-class companies. For more information, call (919) 403-0251 or visit http://www.best-in-class.com/