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Related Experiment Videos

How to ensure supplier quality from your supplier management program.

M S Weiss1

  • 1Ernst & Young LLP, Los Angeles, CA, USA.

Hospital Materiel Management Quarterly
|January 7, 1998
PubMed
Summary

Companies increasingly rely on suppliers for product components. Ensuring high supplier quality is crucial for maintaining competitiveness and meeting customer demands for excellent, low-priced products.

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Area of Science:

  • Business Strategy
  • Supply Chain Management
  • Operations Management

Background:

  • Companies are shifting away from vertical integration to concentrate on core competencies.
  • External suppliers now provide a larger proportion of finished products.
  • Global markets necessitate high-quality, competitively priced goods.

Purpose of the Study:

  • To highlight the economic importance of supplier quality in modern business.
  • To emphasize the impact of supplier quality on overall product quality and competitiveness.

Main Methods:

  • Analysis of current business trends in supply chain management.
  • Review of factors influencing product quality and market competitiveness.

Main Results:

  • Supplier-provided components significantly impact final product quality, second only to design.
  • Purchased materials constitute a substantial percentage of total product cost and composition.
  • Maintaining high supplier quality is essential for economic viability.

Conclusions:

  • Ensuring supplier quality is a critical economic imperative for businesses.
  • Focusing on core competencies necessitates robust supplier quality management.
  • Supplier quality directly affects a company's ability to compete on price and quality.

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