An empowered supplier is a competitive ace card

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An empowered supplier is a competitive ace card

Brands and retailers can have relationships with a great number of suppliers, which can reach in the thousands for the bigger players. When the volume is that high, it can be difficult to think of individual suppliers as anything more than a transactional necessity for the manufacturing of hardline goods. But brands and retailers that see their suppliers this way may miss out on what their more reliable and advanced suppliers can offer them.

Increasing numbers of brands and retailers are looking for ways to empower their suppliers, but this is easier said than done. Effective buyer and supplier collaboration is not only about open communication across the entire supply chain, it’s about enabling the suppliers to feel they can share ideas and make recommendations as the true owners of hardline product quality.

While working with empowered suppliers is the ultimate goal, the path to getting there isn’t always straightforward and should be broken down into smaller goals. Some of the most common challenges brands and retailers face when looking to empower their suppliers include:

  • Easy to say, but not to do
  • Time-consuming
  • Empowerment is based on trust but needs a system for monitoring
  • Reluctance from some factories
  • Unclear quality liability

Supplier empowerment: Where to begin
It’s important to keep in mind that empowering your suppliers means being in direct contact with them. Using intermediaries that muddy the waters can complicate the task and make it more difficult. Another question to ask is whether all your suppliers can be empowered. To answer this, you need to have a clear understanding of your supply chain. The factories most likely to align with your expectations will be the more strategic and trusted ones with a long-term approach. These are usually factories with a solid QMS and with whom there’s already fluid communication, a solid investment, and projects demonstrating growth to make this commercial relationship last.

You can start by asking some simple questions:

  • Are you working directly with factories or through vendors?
  • Do you have top factories that you work with?
  • Do you have long-term partners?
  • Do you have a stable sourcing strategy? Or do you shift countries frequently?
  • Do you create partnerships with your manufacturers?
  • What incentives will you bring to the factory? Will you bring more orders?

As essential as it is to understand where you stand before launching an empowerment program, it’s equally important to make factories understand the benefits for them. Among other elements, advantages for empowered suppliers include:

  • Less external control
  • Cost and time savings
  • Improved quality processes and production output
  • Improved partnerships with customers that can result in more orders

Supplier empowerment: Implementing an effective program

Empowering suppliers also offers significant benefits to brands and retailers of hardline goods. It allows for better resource optimization, going further upstream, and doing more quality assurance, ultimately reducing costs and allocating budget to areas of risk. The final objective would be to replace third-party inspections by shifting quality ownership to the suppliers. This would increase efficiency and ensure continuity, even during disruptions like those we saw in the last couple of years.

Brands and retailers with a solid quality management team can put all this in place through their internal teams, allocating time and resources to train and monitor their selected suppliers. That said, this sort of program, while worthwhile, isn’t easy to implement. It’s a time-consuming process that requires constant follow-up and a strong and comprehensive setup. Continuous monitoring is also necessary to ensure that factories are qualified and maintain expected quality standards.

Brands and retailers have the option to bring in additional resources and use a qualified third party to take charge of the program instead of allocating it to an internal team.

A 7-step program: The ‘Factory Certified Auditor Program’

At API, we support our clients’ supplier empowerment strategies as part of our global risk-based approach. We’ve implemented a 7-step program, the ‘Factory Certified Auditor Program,’ designed to empower the best-performing suppliers to perform their own inspections. The 7-step program covers:

  1. Program introduction to vendors
  2. On-site assessment
  3. Validation and training
  4. Examination
  5. Correlation & probation
  6. Certification
  7. Monitoring

Why should brands and retailers follow this program?

  • Expert guidance: Industry experts introduce additional resources and external inputs when developing and implementing the program.
  • Flexible and reliable: Training is prepared by industry experts according to customer needs and what’s already in place with multinational brands.
  • Continuous monitoring: Regular monitoring ensures that factories are well qualified and maintain good quality standards.
  • Increased quality, lower costs: Externalization of training and alignment with vendors aim to shift quality ownership in harmony with brand requirements.
  • Neutral partner: An external, neutral agent can intervene as needed with no conflict of interest.
  • Complete or partial manager participation: Managers can partake in 100% of the program or only the stages requiring reinforcement.

Interested in learning how API can help your supplier empowerment strategy?

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Sustainability science: ensure your recycled polyester claims are genuine

According to Precedence Research, the recycled polyester (rPET) market is expected to hit US$14.23 billion by 2030, driven by soaring demand for sustainable products from consumers, governments, and NGOs. The use of rPET in consumer goods is no longer a trend but a reality in many categories, including toys and furniture. What started with soft toys containing stuffing made from rPET is fast-evolving into other uses. Danish toy giant Lego has announced its first prototype bricks made of rPET from discarded bottles, and IKEA has launched a range of kitchen furniture with plastic films made out of recycled bottles. Many other furniture brands are producing products made from rPET, including chairs and stools, storage boxes, bathroom accessories, and more.

Amid this rise in environmentally conscious consumerism, sustainability has become a powerful marketing tool in a crowded marketplace. But as green consumers become more informed and critical, brands and retailers must be able to back up the use of rPET in their products with proof to avoid risks of reputational damage and noncompliance. Until now, the primary way to verify the inclusion of rPET in products was to rely on declarations and documents from suppliers and third parties. By betting solely on someone else’s information, however, brands risk greenwashing (claiming something as sustainable when it isn’t) and breaching regulations (the EU and GRS-V3 impose a minimum recycled polyester content of 20%).

What is recycled polyester, and why is it so popular?

To create virgin polyester (PET) –the world’s most common plastic—crude oil and natural gas are extracted from the earth and heated to form a molten liquid. The liquid is spun into fibers to create polyester fabric or molded into plastic containers. These products aren’t biodegradable and will persist in the environment, even as they eventually break down. Recycled polyester (rPET) originates mostly from post-consumer PET bottles that are melted down and re-spun into new polyester fibers. One tonne of rPET saves 11,100kWh of energy—the equivalent of two years of energy consumption for an average household. Each kilogram of mechanically recycled polyester also represents a reduction in greenhouse gas emissions by more than 70% compared with virgin polyester.

A scientific solution to verify recycled polyester

The only way to be 100% sure that the amount of rPET in your products matches what your brand claims is through reliable scientific testing. As part of a continuing commitment to helping brands achieve growth through sustainability innovations, API and Worms Safety Laboratories have pioneered an innovative solution that detects and quantifies rPET in products and materials to prove its existence and avoid greenwashing. The accurate testing method is based on nuclear magnetic resonance (NMR) technology, which is highly sensitive, robust, precise, auto-calibrated, and not affected by additional chemical substances such as dyes, viscose, or others. In simple terms, the process targets the presence of isophthalic acid (IPA), which is added to PET to give specific properties to the raw material. This superior testing method uses NMR technology to compare the IPA content in each sample to the average IPA content derived from a reference database of bottles collected in Europe, China, and India. More information about the rPET testing can be found here.

More accurate than any other method

Other methods are available to measure IPA content, including Fourier Transform Infrared Spectroscopy, Raman, Liquid Chromatography, and Gas Chromatography. However, common disadvantages of these processes include the generally higher uncertainty of the testing equipment and the sensitivity to other substances present in the sample. The solution developed by API and Worms Safety Laboratories is highly sensitive and specific, with low detection limits and greater certainty. The PET bottle reference library is continually monitored and updated, and any changes in PET quality on the market is reflected in the test results.

Interested in learning more about how this solution can benefit your brand?

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The drive toward sustainable packaging

We live in an era in which sustainability has never been more important in every step of the supply chain. Today’s consumers increasingly demand products that have a reduced impact on the environment, which includes eco-friendly packaging. In the toy industry, this has driven major manufacturers like Hasbro, Mattel, Lego, and MGA Entertainment to make pledges to reduce their packaging and make the switch to recycled or eco-friendly materials.

We’re seeing the same pattern in other industries, such as furniture. Swedish giant IKEA is aiming to eliminate plastic packaging from most of its products by 2025. Players such as Amazon have also joined the movement, with its ‘Frustration-Free Packaging’ that helps brands produce less waste than traditional packaging by redesigning their packaging, eliminating waste throughout the supply chain, and ensuring that products arrive undamaged on customers’ doorsteps.

The goal of these initiatives is to tackle the harmful impacts of plastic packaging on the environment in favor of alternative solutions with less impact.

The problem with plastic

Each year, around eight million tons of plastic waste end up in the world’s oceans. Forbes has reported that plastic trash is found in the guts of more than 90% of the world’s sea birds, in the stomachs of more than half of the world’s sea turtles, and is contributing to the deaths of whales. It’s predicted that, by 2050, the mass of plastic in the world’s oceans will exceed the mass of all the fish that live there. Plastic packaging can take thousands of years to decompose in the environment and also takes a great deal of energy, water, and other natural resources to produce.

These sobering figures have made many consumers deeply concerned about plastic packaging finding its way into the environment, and eco-conscious consumers will choose brands that are working to address this impact over those that aren’t.

The role of legislation

Alongside pressure from consumers and NGOs, multiple laws and regulations are being introduced to find a solution to the plastic problem.

Many governments have formulated systems that support a circular economy and reduce their national waste. The extent of these requirements varies among countries, but overall, we’re seeing increasing numbers of regulations aimed at reducing the use of packaging and promoting more sustainable packaging materials.

In Europe, the Waste Framework Directive establishes measures for dealing with waste, while the Packaging and Packaging Waste Directive intends to harmonize the management of packaging waste and prevent or reduce the impacts of packaging and packaging waste, including by setting recovery and recycling targets.

There are also regulations specific to certain nations, such as the UK’s plastic packaging tax that came into force on April 1, 2022. The UK Plastic Packaging Tax (PPT) affects businesses that manufacture or import plastic packaging, including packaging that already contains goods (such as plastic bottles containing beverages). The tax aims to encourage the use of recycled rather than virgin plastic in packaging (when permitted) and stimulate the increase in recycling and collection of plastic waste. You can learn more about it here.

In March 2020, France adopted Law No. 2020-105 Regarding a Circular Economy and the Fight Against Waste. This law aims at minimizing waste and promoting resources to be reused as much as possible. The economic model targets low consumption of nonrenewable resources, the reuse of waste as a resource, products that have a longer useful life, the recycling of 100% of plastics, and less wastefulness. The law also sets the goal of recycling 100% of plastics by 2025 and the end of single-use plastic packaging by 2040.

In the US, there are also initiatives to reduce plastic consumption and packaging, such as the California plastic waste and labeling bills. These propose several laws that make labeling less misleading and shine a light on the responsibility of packaging producers to find alternatives to single-use, non-recyclable plastics.

The packaging landscape is complex, with growing numbers of regulations and standards to keep in mind that collectively aim to achieve a more sustainable future. With adequate guidance and clear visibility of targets and requirements, brands can prepare to adjust their processes as appropriate and ensure a smooth transition.

At API, we can help you comply with these and other packaging requirements while supporting you in bringing better products to the market. Interested in finding out more?

 

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COVID-19: Our ‘Epidemic Prevention Measures’

API_10 Epidemic Prevention Measures
We have implemented extraordinary “Epidemic Prevention Measures” with the 10 following steps (*This does not concern China where we already have a clear plan communicated and where the situation is improving):
  1. We follow the local authorities’ recommendations in terms of health and safety and travel bans or limitations   
  2. Appointment of one Chief Hygiene Safety Officer per office
  3. Self-temperature checks on a daily basis – above 37.5 degrees, the person must report to the Chief Hygiene and Safety officer and their N+1, and consult a doctor
  4. Recommendations on hygiene rules
  5. Guidelines for employees who exhibit flu-like symptoms to stay home and seek immediate medical advice
  6. Any employee whose family or household member is a suspected case or has travelled to known contaminated clusters shall immediately notify the Chief Hygiene and Safety Officer and:  – Refrain from working from the office or travelling to factories until a decision is made by the Chief Hygiene and Safety Officer and their N+1 – If the risk is confirmed – 14 days self-isolation and work from home
  7. Visitors to our offices for face-to-face meetings are not authorised. If face-to-face meetings are necessary, guests must be registered and determined as healthy by the Chief Hygiene and Safety Officer
  8. Employees to minimize social contact, with a limit on the number of teams at the office at the same time and 1m safety distance followed
  9. Everyone wears mask in office or while travelling to factories
  10. A questionnaire for each factory is implemented with each booking to ensure conditions are suitable for inspection and rules of hygiene and safety are also followed by factories
For more information, consult your usual contacts.
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Video-Monitored Self-Inspections in COVID-19 Affected Areas

The exceptional situation currently facing the household goods and toys supply chain is forcing companies around the globe to adapt to a reality that is changing by the day.
At API, we’re continuously looking for new technical solutions to support our clients, adopting all necessary measures to help minimize the impact on your shipments while keeping our employees, your teams, and those of your suppliers safe.
While some areas are returning to activity, others remain unreachable and access to many factories is still limited for safety reasons. However, this doesn’t mean that we cannot support you in monitoring the quality of your goods. Traditional inspections may for now be limited in some areas, but we can bring you our support and expertise via video-monitored self-inspections.

Video-monitored self-inspections

Video-monitored self-inspection can easily be put in place for your reliable factories, with monitoring via a video call with one of our technicians who will provide guidance throughout the process.
This solution brings additional support to your brand to help control the quality of your goods in these extraordinary times. Some of the main benefits include:

  • Support in ensuring self-inspection controls are made thoroughly
  • Verification of the proper methods of implementation and efforts put in place to conduct an adequate inspection and truthful declaration

While this tool can help confirm the correct self-inspection is carried out, the absence of our technicians on-site brings certain limitations: 

  • Some verifications may not be fully under the control of API (Ex. counting of quantities, random carton selection…)
  • Some points cannot be validated remotely, or on-site verifications reported accurately (Ex. bulk shading or humidity/moisture level, appearance checks, assembly, function checks…)
  • The factory/vendor’s history with the brand is essential to determine the feasibility of this solution – not advised for one-off / short-term suppliers

At API, the health, safety, and security of our teams, customers, partners, and factories is key. We remain at your disposal and continue to look for risk-free solutions, and we thank you once again for your support during this crisis.

Interested in knowing more about our video-monitored self-inspections? 

 

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7 Tips to Help Alleviate Disruptions in the Supply Chain in times of COVID-19

This crisis may be the catalyst to revisit the global supply chain strategy and accelerate the adoption of new models and capabilities, but in the meantime short-term actions are needed to respond to the challenge.

Here are some tips from a manufacturing perspective to help with the continuity of your supply chain while maintaining quality products:

 

7 tips_pic

  1. Care about your people and your supplier’s teams
  • Educate employees on COVID-19 symptoms and prevention
  • Ensure your factory has screening protocols

Training and specific audits that focus on the measures to be adopted during this crisis are a good tool to ensure the health and safety of the teams.

  1. Increase your visibility over workforce/labor planning
  • Check actual capacity of your factories
  • Assess impact on production times
  • Pay additional attention to product quality as plants run with fewer workers and some might hire temporary/new staff who might be unqualified

Data collection here is key: from gathering the records of the factories for a quick screening, to implementing more in-depth measures such as technical audits, in-line inspections or in-production assessment, having greater visibility of the real situation of your factories is vital at this stage to not only ensure the completion of your production on time but also the quality of the goods delivered.

  1. Understand your key suppliers and increase the transparency of all your supply chain
  • Understand the impact your orders have on one’s factory production lines
  • Understand the flexibility one factory has in regard to production / purchase shifts

Whether your orders only represent a small portion of one factory’s production lines or you are flooding these same production lines with your goods makes a huge difference as to how to interact with this factory. 

If you are not a key customer, you need to make sure you understand how the factory will be dealing with your order when/if they face a shortage of staff or inventory. What flexibility do they have to shift production and purchase order fulfilment to other locations if their supplier of raw materials / components is out of stock?

  1. Carefully select the suppliers you’ll work with if you are shifting countries
  • Ensure you’re working with the right suppliers for your productions

The concept of shifting production to other areas was already on the table before the virus appeared, with a trend among many companies toward considering moving ‘out of China’. Diversifying areas of production and looking for alternative locations can help secure additional inventory and capacity. However, launching production in a new area can be challenging if you don’t have the experience or the right teams in that specific area. A third-party company can support you with adapted solutions to facilitate the transition and ensure the quality of your production through a dedicated technician program.

  1. Update inventory policy and stock management
  • Before = as little stock as possible
  • Now = need to anticipate and increase safety stock

This might lead to associated risks such as product deterioration or mold development which can be identified via a final inspection and tackled with a warehouse condition audit or a more elaborate mold prevention program.

  1. Align IT systems and support evolving work requirements
  • Manage quality remotely
  • Use new IT tools and solutions

We are being forced to shift from a culture of ‘on-site’ work to ‘remote work’. Be ready to embrace change and to consider possibilities that were not even contemplated a few months ago, such as video-monitored inspections.

For brands, retailers and importers’ quality management teams, online quality management solutions can help manage your goods’ quality even when working from home. With a simple click of the mouse, it is now possible to keep track of your quality actions, read reports and make decisions on whether or not the goods should be shipped. Expert technicians can also be one video/phone call away, offering their support in these difficult times and finding the best possible solutions to cope with the crisis.

  1. Prepare for the rebound
  • Be ready to move quickly

We are, without doubt, facing exceptional times and although it is impossible to anticipate when and how this epidemic will pass, we need to remain confident, align our efforts and prepare for a brighter future. Stay alert and ready for change: those that are able to adjust quickly will have a higher chance of rebounding and adapting to the times ahead.

 

we are in this together, and at API we are putting our manufacturing experience and product expertise at the disposal of our clients to help them adjust during this difficult time. Thanks to the agility and flexibility of our teams and our local infrastructure, we are able to quickly implement on-site and remote solutions to respond to our clients’ needs.

Do not hesitate to get in touch with us to discuss your supply chain challenges.

 

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A Look at Your Supply Chain in Times of COVID-19

Despite significant efforts to contain the spread and global impact of COVID-19, the situation has worsened, affecting people and companies all around the globe. The full implications of COVID-19 on the supply chain remain difficult to predict, with some areas slowly returning to activity while others are now being adversely affected by the virus. It is, however, possible to see that, at this stage, the crisis is having a direct influence on the supply chain, from raw materials to finished products.

As a company with a strong presence on the ground, visiting factories every day, we at API have seen first-hand some of the challenges that brands and retailers are facing in their supply chain. We are helping our customers and their suppliers brace for the impact this extraordinary crisis has had, and continues to have, on their supply chain, providing them with short-term solutions that will help them maintain high quality in their processes and goods while ensuring that the people on the ground remain safe.


Supply Chain Challenges

We were confronted with the gravity of the crisis during the first peak of the virus in China, where some factories were unreachable, production stopped, goods were unable to be shipped, etc. Now that activity is resuming in this part of the world, the challenges have evolved, resulting in many companies putting the quality of their products at risk. It is important to bear in mind that these challenges will most likely be replicated in other manufacturing areas when activity resumes. Therefore, a sound understanding of those issues now might allow for quicker reactions in some of your other sourcing locations. Among them are:

  • Shortage in labor/workforce: factories are struggling to get 100% of their employees back on site due to health issues or travel restrictions. This might encourage factories to hire new people lacking experience, with no time for adequate training and with the risk of undeclared subcontracting.
  • Inadequate production planning and status: when resuming activities, some factories might not operate at their full capacity which will render it difficult to meet production targets. It is important to check your factory records in order to see actual people in the production line, daily output, and quality control reports.
  • Rush in production: when factories are able to resume activity, some might be in a rush to make up the time they lost and may be tempted to cut corners and speed up processes. Some steps are rushed leading to mistakes, and some steps are directly skipped such in some cases the quality control, which might put your entire production at risk.
  • Excessive stock: goods that were produced before the virus outbreak have likely been held in the warehouse while awaiting shipment. In warehouses where storage and conditions are not satisfactory, complications such as deterioration or the development of mold may have emerged. 
  • Raw materials shortage: resumption of activity leads to an increased demand for raw materials and components, thus resulting in a shortage. Brands and retailers can shift their production to areas that are less impacted, such as other SEA countries, which involves a risk if the new suppliers and factories are not adequate. 
  • Lack of quality control to ensure safety: at the height of the epidemic in China, factories and third-parties reduced the movement of people in and out the premises to avoid putting employees at risk. This meant a decrease in the level of quality control, which put the production quality at risk.

 

7 Tips to Help Alleviate Disruptions in the Supply Chain

7 tips_pic

This crisis may be the catalyst to revisit the global supply chain strategy and accelerate the adoption of new models and capabilities, but in the meantime short-term actions are needed to respond to the challenge.

Here are some tips from a manufacturing perspective to help with the continuity of your supply chain while maintaining quality products:

  1. Care about your people and your supplier’s teams
  • Educate employees on COVID-19 symptoms and prevention
  • Ensure your factory has screening protocols


Training and specific audits that focus on the measures to be adopted during this crisis are a good tool to ensure the health and safety of the teams.

  1. Increase your visibility on workforce/labor planning
  • Check actual capacity of your factories
  • Assess impact on production times
  • Pay additional attention to product quality as plants run with fewer workers and some might hire temporary/new staff who might be unqualified


Data collection here is key: from gathering the records of the factories for a quick screening, to implementing more in-depth measures such as technical audits, in-line inspections or in-production assessment, having greater visibility of the real situation of your factories is vital at this stage to not only ensure the completion of your production on time but also the quality of the goods delivered.

  1. Understand your key suppliers and increase the transparency of all your supply chain
  • Understand the impact your orders have on one’s factory production lines
  • Understand the flexibility one factory has in regard to production / purchase shifts

Whether your orders only represent a small portion of one factory’s production lines or you are flooding these same production lines with your goods makes a huge difference as to how to interact with this factory. If you are not a key customer, you need to make sure you understand how the factory will be dealing with your order when/if they face a shortage of staff or inventory. 

  1. Carefully select the suppliers you’ll work with if you are shifting countries
  • Ensure you’re working with the right suppliers for your productions

The concept of shifting production to other areas was already on the table before the virus appeared, with a trend among many companies toward considering moving ‘out of China’. Diversifying areas of production and looking for alternative locations can help secure additional inventory and capacity. However, launching production in a new area can be challenging if you don’t have the experience or the right teams in that specific area. A third-party company can support you with adapted solutions to facilitate the transition and ensure the quality of your production through a dedicated technician program.

  1. Update inventory policy and stock management
  • Before = as little stock as possible
  • Now = need to anticipate and increase safety stock

This might lead to associated risks such as product deterioration or mold development which can be identified via a final inspection and tackled with a warehouse condition audit or a more elaborate mold prevention program.

  1. Align IT systems and support evolving work requirements
  • Manage quality remotely
  • Use new IT tools and solutions

We are being forced to shift from a culture of ‘on-site’ work to ‘remote work’. Be ready to embrace change and to consider possibilities that were not even contemplated a few months ago, such as video-monitored inspections.

For brands, retailers and importers’ quality management teams, online quality management solutions can help manage your goods’ quality even when working from home. With a simple click of the mouse, it is now possible to keep track of your quality actions, read reports and make decisions on whether or not the goods should be shipped. Expert technicians are also one video/phone call away, offering their support in these difficult times and finding the best possible solutions to cope with the crisis.

  1. Prepare for the rebound
  • Be ready to move quickly

We are, without doubt, facing exceptional times and although it is impossible to anticipate when and how this epidemic will pass, we need to remain confident, align our efforts and prepare for a brighter future. Stay alert and ready for change: those that are able to adjust quickly will have a higher chance of rebounding and adapting to the times ahead.

At API we are putting our manufacturing experience and product expertise at the disposal of our clients to help them adjust during this difficult time. Thanks to the agility and flexibility of our teams and our local infrastructure we are able to quickly implement on-site and remote solutions to respond to our clients’ needs.

Do not hesitate to get in touch with us to discuss your supply chain challenges.

{{cta(’50a4f491-5f87-4b65-9c40-a6b47f7653cc’,’justifycenter’)}}

 

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5 Reasons Why Your Quality Assurance Procedures Are Not Implemented

Is your retail buying office falling behind with quality assurance procedures that should be taken on as best practice?

In this part one blog post, we delve into the reasons why your retail buying office could be falling behind, and not adopting the best practice quality assurance procedures that will keep your brand competing in the global market place. 

The goal of quality assurance (QA) used to be simple; make sure that a product performs the way it is supposed to.

Over time the goal has evolved, from simple post production judgments to a multi-step process that begins with management defining outcomes all the way to distribution. This evolution is ongoing, and it has seen the adoption of QA within modern companies become almost ubiquitous – from mortgage lenders to software developers, to engineering firms.

The reason, you ask?

QA is vital to success!

To keep your business competitive in a fast-paced world, you need to make sure that you’re keeping up with the best practices for QA. Best practices are clear processes integrated into every facet of product design, development, and implementation, which ensure the highest chance of achieving your objectives.

Now you know about QA, and you want the best practices. We’re here to help.

But first…

Acknowledge your weaknesses. While this may be difficult to do, there is immense value in spending the time analysing this.

Here are five reasons why your buying office could be falling behind, and not adopting the best practices for QA that will keep you competing in the global market: 

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1. Forgetting that it’s a team effort

Quality_Assurance.jpg

With QA being an increasingly integrative process, as opposed to final product inspection, it has become important to realize that QA has become a team effort.

The responsibility here begins with senior management

The staff that management chooses to carry out QA reflects how seriously management considers that role. This choice is important because QA staff need to have relevant experience to meet the objectives and closely follow the processes required by management.

This part may seem obvious, but what is critical is that the staff need to be able to work with senior management. 

Mutual respect is key

A fully functioning QA team needs an open, responsive channel with senior management in order to perform their jobs properly. You do not want to be put in a position where there is a lack of communication from management, and subsequently, have the QA team blamed for not having the perspective of what they are required to do.

Alternatively, you also do not want the QA team struggling to resolve an issue because they cannot communicate with senior management about it. The role of a QA team is critical for the product success, so make sure that it is staffed with respected people that can be approached and worked with.

Other than QA staff choice, it is also key to have early involvement of the suppliers, designers, developers, consumers, and any other party involved in the process. 

The more interaction there is with suppliers, the more close monitoring there can be of the quality of the material and products.

Involvement of designers and developers will minimize later conflict on what is expected and what is possible. And the involvement of potential consumers is critical to assess the projected profitability of the product.

This will all allow an efficient QA process, which minimizes the need for final-stage inspections/testing that could be costly or find issues that are difficult to rectify at that late stage. It also allows for early termination of unprofitable enterprises, without the massive financial losses that would come from realizing that post production/purchase. 

QA_Best_Practises.png

Figure 1. Involving all relevant parties in the process early on will allow for inspections of the design, production protocol, and consumer interest before the product is actually manufactured. This will allow for integrated QA, reducing the need for post-production and final stage inspection/testing, and in some cases for the timely shutdown of unprofitable projects (Adapted from Hinckley 1997).

2. Inadequately defining your QA objectives can create misaligned goals

shutterstock_587443550.jpg

Involving more people in the QA process from conceptualisation to purchase raises the next important step toward improving QA.

For QA to function properly it is critical to clearly define the objectives.

Remember that with any product there will be trade-offs between the target quality, release date, budget, and consumer satisfaction. The relative importance of each of these factors is situational and needs to be decided on and formalized in detail.

An overarching, vague goal for QA such as “Achieve greater QA” can be difficult to attain if the QA personnel are not provided with clear objectives that deal with trade-offs. If you’re prepared to sacrifice time for higher quality, make this clear in the objectives so that the QA inspectors know what to prioritize.

Clarity is paramount.

When defining objectives, remember not to assume. The more detailed the objectives are, the easier they are to follow. With that said, beware of removing all autonomy from the QA process, because this will undermine the role of those carrying it out. Strike a balance that is clearly understood, but leaves maneuverability for the staff to know that their experience and skill is valued. In the same vein, make sure that everyone is on the same page as far as your set standards/benchmarks for quality go.

Keep the quality checks consistent, with well-defined checklists for each team unit in the process, which are not open to differential interpretation by the QA staff, the producers, and the buyers.

QA as a procedure has changed over the years to ensure there is success from production to distribution.

This is part one of a two part series on QA best practices and how they can empower you to help your company achieve the goals and objectives you set out to achieve. 

Help your buying office follow these best practices and more! 
Simply click below to download your FREE copy!

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5 Reasons Why Your Quality Assurance Procedures Are Not Implemented – Part Two

Acknowledging that quality assurance is an integrated process; here we endevour to delve into some more best practices to help empower you and your company with the ability to achieve its goals and objectives.

3. There is often no accountability

Quality assurance best practicesOnce you have done your best to involve all relevant parties in the quality assurance procedures, your next task is to keep your finger on the pulse.

Management needs to make sure that the QA staff are accountable for success and failure.

The deeds of the QA staff need to be monitored and made known.

A report of the activities and outcomes of the QA staff’s work is a good way to make sure that they are made responsible for poor performance, or given the due credit for functioning well.

With that said, do not fall into the trap of merely documenting success and failure.

With accountability there need to be consequences for whatever results the QA team produces. Be sure to actively intervene if QA is consistently not meeting desired standards, and reward good performance to highlight the value of QA to the company.

If QA staff are doing their job properly that might go unnoticed, do not make the mistake of undervaluing their role!

Once again, it is important to maintain open transfer of information, so that the effectiveness of QA practices can be monitored, and adjustments made as they are needed. On that note, do not be too quick to blame personnel. When people are blamed they may become more likely to conceal problems, rather than attend to them by bringing them to light. First be sure that the details of the procedure are not at fault, and that clear communication channels are open to rectify mistakes. Only with constant feedback can future mistakes be mitigated.

This is an area where assumptions are dangerous. Don’t assume that processes are being followed, or that the current way of doing things is always fine. Check in.

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4. Not looking around you

Quality_Assurance_Management.jpgEven if your quality assurance procedures seem to be working fine, and you have integrated QA and open channels of communication, you may still be falling behind.

Best practices are called that for a reason.

They are tried and tested and shown to improve the success of companies. However, they are always progressing, and so should you.

Do get complacent with what you have, or let hubris stand in the way of taking note of what works for others.

Seeing what works for those in a similar field may greatly improve your business, through incorporating useful ideas, tools, or technologies they have that you would not necessarily have come up with. This is particularly pertinent in terms of technological advances and environmentally friendly practices, both of which are seeing rapid, astonishing developments around the world.

Naturally, success is contextual – no best practice will fit perfectly for everyone.

This creates space for molding best practices to suit your specific objectives. However, be wary that excessive experimentation, and both blindly following and completely ignoring outside advice, may be detrimental.

Stay competitive by making sure that you have at least what your competitors have, and then add more and improve on existing ideas to give yourself the edge.

To remain competitive you must remain vigilant of opportunities for innovation.

5. How often do we fail to pick our battles wisely? 

Team_Effort.jpgAll along I have emphasized that QA procedures are a team effort.

You do not have the time to meet with everyone, answer all emails, and be everywhere at once. You also desire time off.

The good news…

You do not need to do everything on your own!

You can pick your battles to optimize expenditure of time and money.

When you do not have the requisite expertise, hiring a 3rd party company may be the way to go.

This could free up time and some responsibility, allowing you to focus more on what you can manage. This will allow for all-round improvement in QA, generated by including more hands and minds to focus on doing and assessing the quality of specialized work.

For QA, picking your battles may also mean critically assessing the whole process and deciding what most needs attention and monetary investment.

This brings us back to those important trade-offs…

Determining the priority level of each part of the quality assurance process will allow the optimum allocation of time and resources. This will rely on clear objectives for QA, and the standards set for each step of the process;

  • Carefully consider which parts of the QA process are the most vital, and label them.
  • Generate feedback from the differential investment, and tweak the investment as needed.
  • Be flexible, and cut your losses.
  • Meet acceptable, achievable standards – you do not need to be perfect in every minor detail if the product is still successful.

Closing Tips

shutterstock_590654183-2.jpgWith these five (See part one) potential shortcomings of your buying office’s approach to QA in mind, you will hopefully be able to improve your quality assurance procedures to meet higher standards.

As a final note; Remember that QA is not quality control. QA is a multi-tier concept, which needs involvement from the beginning: from management defining the desired outcomes of the product to the production team streamlining the production process, to assessing the final product is acceptable and distributed efficiently.

QA is not just testing the product works, which would be the objective of quality control.

Buying offices need to be concerned with more than just the final product. Build quality into the product up front by involving representatives from all vital levels of the product (design teams, funding agencies, production managers, and consumers), so that QA is preventative, not an afterthought.

Do not make QA about putting out fires, make it a process that means that you can focus on solving problems before they arise. This is not only easier but more cost and time effective.

We have spent some time delving into some of the basic quality assurance procedures and how applying these to your operations will help alleviate some of the internal challenges that you currently experience.

What do you think?

Have you applied any of these QA steps? Are there any more that we should add to this, if so what are they?

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Supply Chain Management Best Practices To Implement In Your Buying Office

Quality practices are essential to the success of your entire supply chain operation, knowing exactly what these practices are will help inform the steps you need to take in order to ensure success in your buying office.
There are a number of factors that affect the successful implementation of quality practices in buying offices. In this blog post, we list seven supply chain management best practices that are critical success factors in ensuring successful operational efficiency.

1. A committed organization, from the board down

Organizations that actively encourage the involvement of buying offices in decision making and welcomes input from suppliers to identify areas for potential productivity improvements have the best chance of successful implementation. IKEA as a world renown furniture retailer is a great example of involving buying offices in the decision-making process. They have tried to create an integrated system where there is clear communication through the entire operation. We know that this method of organizational commitment has had incredible amounts of success and to always keep this in mind as you conduct your organizational operations.

Supply Chain Management Decision Making.jpg

There is evidence that supply chains are often managed functionally with metrics, systems, and behaviors geared to managing the performance of a specific area. Whilst detailed functional knowledge and understanding are essential to delivering a quality product, a narrow view can lead to a potential misalignment of the different elements of the chain towards the end goal. Senior management needs to ensure that decisions which are taken at the top are not sub-optimised in the operational execution. In practical terms, this means a real transformation in how measurement systems are designed and implemented to ensure that there is a full understanding of how the business interlinks. Individual incentives and success need to be aligned for the achievement of overarching goals, not purely functional excellence.

2. Effective program management

In order to successfully implement a quality management system there are three key lessons to keep in mind:

  1. Do not be too ambitious with the timing and expectations of rapid results. New process and systems need time to mature and the flexibility to adapt and change in order to achieve the required results.
  2. It becomes easy to set lofty targets but in order to see results, it is important to align the strategic requirements with the quality system functionality.
  3. Data accuracy is critically important. It is impossible to improve what isn’t measured so understanding which measures are helping improve quality and which aren’t are essential to helping buying office achieve the standards required.

Let’s take a look at LEGO, they underwent a full restructuring of their supply chain in order to begin optimizing their functions to remain a strong global competitor. They experienced excessive supply chain challenges that resulted in millions in revenue loss. They were aware that something needed to be done. With rapid globalization, adopting a flexible and integrated supply chain and network is essential to remain a strong competitor.

Check out our comprehensive guide to learn more about implementing a global quality assurance system.

3. Consistent, pre-emptive communications.

We have already discussed the importance of data and effectively communicating it with buying offices. Below are factors to consider:

  • Supply Chain Management .jpgBe clear – This may sound like an obvious basic principle, but it’s vital to make sure the ‘narrative’ of the information comes across so that it is understood easier and its relevance and context are clear. Use a brief headline, to sum up, the information being communicated and focus on the key aspects of the data as well as why it is important and how it can be used.  
  • Tailor it – When getting across the key benefits of the project, don’t just focus on general benefits and costs. Consider the context of the buying office you are addressing and tailor it to show how to address their concerns.
  • Be personal and pragmatic – It’s often more beneficial to convey information or communicate through direct channels, either in person or via the phone as opposed to less direct communication such as emails. A personal and pragmatic approach will get faster and better results when aiming to implement change.

The above factors create transparency throughout the supply chain, more and more retailers are are beginning to harness the true power of effective and strong communication throughout the entire supply chain, from communication with material suppliers to actual manufacturers. Transparency and effective, clear communication creates a sense of trust through the supply chain which will essentially have effects throughout the entire operation.

4. Take positive action to identify and manage key risks before they become issues.

Supply chain risk management .jpgRetailers can protect themselves from potential supply chain interruptions or delays associated with suppliers’ human rights, labor, environmental, and governance practices by ensuring buying offices have effective compliance programs and robust management systems. Here are steps to manage risk:

  • Align the buying office – Ensure that there is visibility and alignment of the value chain towards the ultimate goal of supplying the customer;
  • Creating ownership beyond silos – There needs to be ownership of the whole chain, not just the buying office, in such a way which allows the risks along the chain to be tackled;
  • Skills and capabilities to execute – The skills and competencies in each buying office must be secured. This starts with the functional skills in each area to provide the depth of executing a process.                              

Supply chains have become increasingly stretched not leaving much room for fault, therefore a successful risk management strategy can increase the effectiveness of your operation and minimize any identified or perceived risks.

5. Develop a framework with baseline targets, adapted as necessary.

Supply Chain Management in Buying Office.jpgInaccurate data, existing systems infrastructure, and entrenched business practices are common barriers to the implementation of quality management systems. The importance of getting existing processes in line with new technologies and methodologies serves to highlight the role of planning, as well as supporting the use of standardized frameworks for implementation. SCOR – The supply chain operations reference model, is a management tool that is used to address, improve, and communicate supply chain management decisions within a company and with suppliers and customers of a company. This model also helps to explain the processes along the entire supply chain and provides a basis for how to improve those processes.

Let’s look at an example from Apple: The technology producer developed a set of standards which is implemented across its supply chain. The result was a supply chain more in tune with its organizational goals to reduce waste and create more sustainable products which in turn create value for its customers. In the end, they diverted more than 73,000 metric tons of waste from landfills, saved more than 3.8 billion gallons of freshwater and prevented more than 13,800 metric tons of carbon emissions.

6. Create a succession of manageable delivery milestones to maintain momentum and build confidence.

Realistic expectations are important to ensure the successful implementation of quality initiatives. Overreaching in time or scope could mean failing to implement measures that otherwise would have worked. It is important to be SMART:

  • Specific,
  • Measurable,
  • Achievable,
  • Realistic,
  • Timely.

Well defined goals, with consistent and measurable outputs, that are agreed to and attainable, that have the required resources to be successfully completed, and have specified timelines are a way to ensure the implementation plan has manageable deliverables. This process ensures that expectations are managed and that buying offices have a clear understanding of how to achieve success. Every individual needs to be made aware of the overall goals, but also the goals that relate specifically to his/her involvement in the process.

7. An actionable, owned, manageable and measurable set of business benefits

Before the WHAT comes to the WHY. It is important for buying offices to understand WHY the quality initiatives are being put in place. Getting their buy-in helps to ensure that everyone is “pulling the cart in the same direction”.  Working for a specific cause creates a banner under which the value chain can unite. Once buying offices know WHY they are doing something they are more likely to support WHAT needs to be done. It is also important to ensure that the benefits are tangible. Buying offices should be able to quantify the benefits so that they stay motivated and focused on the initiatives they are implementing.

These quality practices are essential to the success of your entire supply chain operation, begin by analyzing whether any of these are currently being implemented. Analyze to what extent they are being integrated and begin optimizing these practices to ensure successful implementation of best practices. Have you implemented any of these? How have the been of benefit to you?

 

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