7 Tips to Manage Supply Chain in times of COVID-19

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7 Tips to Manage 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:

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  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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What you should know about Christmas tree testing

Christmas, a very special holiday celebrated all around the world, a sacred time spent with family and friends, houses adorned with traditional decorations and illuminated in a splendor of colors, all leading up to the childlike anticipation of Christmas day, the gifts, the food and the wine!

While it may still be quite a few months off for most people, it is now that time of year when suppliers and retailers the world over begin their arduous preparations for the very busy festive season ahead, starting with none other than the hallowed Christmas tree.

In 2015, 12.5 million artificial Christmas trees were purchased in the US alone at a Christmas tree testingpurchase price of $69.38 each, resulting in revenues totaling $854 million for manufacturers in that short period. As a holiday that approximately 2 billion people around the world celebrate, the market for Christmas and these trees is undeniably massive, not to mention the powerful potential for profits it promises.

But, what happens when things go wrong on the production line?

Between 2010 and 2014 fire fighters responded to an annual average of 200 homes that were reported to be on fire or burnt down in the US alone due to fires started by Christmas trees with a total damage of $16.2 million. Fires started by malfunctions in artificial trees highlight the critical importance of strict quality control measures needed in place during and after production, from the lighting within the tree, the temperatures they produce to the types of plastic that is used to manufacture the tree.

Can your company stand to lose millions because of negligence in the QC process? What about the implications brought about from families that lose their homes or worse?

Preventing unnecessary damages and losses before they happen should be at the top your Christmas wish list. In this blog post we talk to Francois Deudon, CEO of Asia Pacific Inspection, as we seek to understand the technicalities that go into the making of Christmas trees and the essential QC procedures/tests involved in the production of these products, helping to ensure a safer, happier and more ‘festive’ festive season for us all…

Q: What are some of the challenges involved in the manufacturing of Christmas trees in terms of quality?

Christmas tree branch bending procedureA: One of greatest challenges is ensuring that each branch is able to comply with the NFS 54200 / Decree 2003-1123 without any accessible sharp points. In order to comply with this requirement, an industrial practice of bending the end wire of each branch to prevent any accessible sharp points. Many Christmas trees contain hundreds of branches, so the quality control of suppliers plays a significant role so as to manage the potential risks.

Q: One of the biggest concerns that consumers have is the PVC content of an artificial tree – How do quality procedures overcome this kind of challenge?

A: The quality control involved from the design stage to the mass production stage is needed to manage this concern. In the design stage, a client will instruct the supplier that only qualified raw materials should be used to create this product. In the pre-production stage, raw materials or products should be submitted for testing to ensure that these qualified materials are used. Suppliers should not only use these qualified materials; but they should also be able to avoid contamination during the production process. The clients should then assess the chemical management system of the factory, when they choose a supplier. After the production is completed, the client could then appoint a third party company to pick a sample from the mass production for chemical testing to ensure only qualified materials are being used for production and that there is no chemical contamination.

Q: Are suppliers more aware of the raw material and construction of trees that need to comply to strict Christmas tree testing processinternational regulation?

A: The more experienced a supplier is the better he will understand the regulations of any given country. Here it will be the retailer or the importer’s responsibility to choose an appropriate supplier. This can be done through a technical audit, which could help measure the capability and capacity of suppliers, providing valuable information when choosing suppliers.

Q: Do you think stricter quality control or inspection measures can help reduce the amount of fires that are started each year due to artificial Christmas trees? How so?

A: Yes, the testing on mass production products will assess the flammability of artificial Christmas trees. It could also avoid unauthorized change of the materials during this mass production process.

Q: What quality tests are absolutely essential before shipping Christmas trees off to various distributors?

A: The flammability test, the sharp point sharp edge test and the REACH test are absolutely essential before shipping to any distributors.

Conclusion

While retailers and importers across the globe are preparing for all the holiday joys, what we have learnt is that it will be important to select the correct supplier, based on previous testing records or it may even be important to consider an audit that will help identify any procedural risks early on, as the scope of the festive season is too big to cut any corners as any faults of failure will have the potential to lose you millions. The various Christmas tree testing procedures will be important to ensuring that the festive season will be a safe and happy one all round.

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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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2 Ways To Ensure Supply Chain Compliance

Supply chain compliance is becoming one of the biggest challenges faced by all retail professionals. Among small, medium enterprises’s it likely hits a little harder, with limited resources and where costs are always a make or break factor. Often-times you can only afford a supplier lacking certain levels compliance documentation, which in turn requires you to monitor them even more stringently, but can you afford the resources to do so properly? Your supply chain is dotted with complexities that can expose your organization to risk. This risk as you know needs to be avoided and planned for with actionable steps in place to mitigate any kind of exposure or threat to your supply chains operations. So let’s do just that…  In this blog post, I endeavor to highlight only two of the most common supply chain challenges that many regional retailers currently face, but also what you can do to begin achieving that desired supply chain compliance for your brand so that you may begin safeguarding against avoidable areas of risk. So let’s dive in;

First Identify your challenges

Identifying the challenges that you face within your retail supply chain is always the best place to begin, here I list two of the most common challenges that are experienced among many a local retailer; 1. Supplier relationships –  Your suppliers are the key to your entire operation. Take a moment consider that… Supplier collaboration can foster growth, if allowed they can also help you to create operational efficiencies which enables you to get your product to market a lot faster. This relationship will act as an incubator for out of the box, innovative thinking as your supplier begins to take real ownership of the end products and their quality. The way in which you engage with your suppliers from the very beginning, will set the tone for your operations going forward. Careful assessment is needed when signing on new suppliers, this is often the point at which compliance problems begin to seep in. You need to ensure that all the appropriate factory technical documentation is in order when selecting a supplier. A bit of due diligence in this area will guard you in the long-run. This will ensure that you have a defined and agreed upon set of operating principles where everything is done in compliance with these operating principles and standards. 2. CSR and environmental impact – Through adequate evaluation and a good a supplier relationship you will be able to determine CSR and environmental impacts. This is either done through a social compliance audit and an environmental audit which is either done in-house or through a third-party quality provider, such as API. An environmental audit will provide insight into things like by-product waste of the factory, how they dispose their waste, who disposes their waste and what levels of CO2 are being emitted and whether or not any of this can be reduced or are even being addressed. The results will help you to determine their impact on the environment and whether or not they are compliant with local and/or international environmental laws. A social compliance audit provides insight into things like child and forced labour, overtime and possible wage related disputes. This things are not only unethical, but should your brand be aligned with these practices, you will be destroying your brands reputation and image. The results of the above audits will enable you to make an informed decision about the type of supplier you wish to align your brand with. Supply chain compliance and environmental auditing Let’s take a look at what Walmart did; They created what they call the Sustainability Index, which is essentially a scorecard for suppliers to be reported on from various social and environmental production factors. Walmart has said that by the end of 2017 that 70% of its products will come from suppliers who participate through this Index, and as a benefits they will be endorsed as a sustainable partner and proud Walmart supplier. Solutions Supply chain compliance is an important issue to address, with many local retail brands realising that compliance needs to be a top priority to be achieved in order to achieve a globally competitive advantage in the market. So how do we go about achieving just that? Good supplier relationships for supply chain compliance 1. Supply chain visibility –  This refers to the data visibility made available within your supply chain; from where your raw materials come from, to your factory’s technical operations right through to your inventory management strategies. All of this data needs to be made available and visible to your consumers to create a sesnse of openness and trust within your supply chain operations. **When bringing on new suppliers be sure to ask for access to all of their compliance documentation from health and safety, to environmental and technical information. 2. Supply chain transparency – This is where your organisation begins to analyse current quality and compliance procedures. Transparency and visibility need to work hand-in-hand the data provides insight into the operations and the operations provide the data to be analysed. Supply chain transparency endeavours to take a deeper look into your systems and processes, understanding what makes them work and also not work. This approach to your supply chain operations allows you to mitigate risk early on, but also identify any areas that may need improvement, therefor adopting a continuous quality improvement cycle. As mentioned earlier, consumers actively research any retail brand’s supply chain and its processes from raw material to the moment a product reaches the floor to right before they make that purchase decision. It is crucial for your brand to ensure clean and compliant operational procedures if you are to achieve a globally competitive brand. Supply chain compliance need not be another complexity that your retail brand needs to face, through actively engaging and applying the above suggestions to your operations they will indeed help you on your way to a successful and compliant supply chain that puts your brand in a position of growth and also mitigates against any unnecessary risks.

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10 things you will learn from a third party quality provider

Do you feel that no matter how much you plan, the maze of complex logistics is always catching up with you? Successfully running your quality systems is key to the success of your entire operation. As you try to stay on top of your logistics, resources, planning and strategies within your supply chain, you may have never considered the hiring of a third party quality provider. In this blog post, we endeavor to look at how you can benefit from hiring a third party quality provider:

1. Expertise – A third party quality provider has a wide array of clients creating an extensive network and a wealth of knowledge that will all be put into providing you Third party quality provider - expertise.jpgwith efficient quality procedures. They are also up to date with the latest developments in the industry along with the best practices to follow. As a result, you have all the expertise and knowledge about your quality procedures at your disposal; this can be invaluable to your quality and logistics procedures.

2. Efficiency – A third party quality provider has the infrastructure to manage all the logistics you require from all the certifications and documentation to the technology that is needed to ensure you receive a delivery on time as well as a product of a high quality. Apart from just managing the logistics, they also come with all the technical experience from having local product inspectors and an extensive network to create that efficiency in the logistics that you require.

3. Technology –  The use of appropriate technology and software to optimize your supply chain may be too expensive to have in-house, therefore leveraging the technology that a third party quality company can provide may be the way to go. They can save you time and minimize your risks through inventory tracking, warehouse management and can furnish you with quality compliance certification according to your specification.

4. Accountability – Upon meeting with your provider, it will be important for you to agree upon a set of expectations that will need to be achieved, a document like this will help to hold you both accountable to the operating procedures and their successes. It will also be important for your quality provider to show whether or not they can deliver on these set expectations.

5. Innovation – With their expertise, they are able to meet and fit your needs in the way they see best fitting allowing them room to innovate to achieve the best possible results for you and your operating procedures.

6. Optimization – Along with the technology and software that they use, they are able to identify potential risks before they happen and are able to continuously make improvements along the way. Continuous optimization is key to the success of any quality and supply chain procedures.

7. Network – The network an outsourced organization has can be extensive, providing your company with the best value for your money as well as a tried and tested networks to conduct your operation effectively and efficiently.

8. Risk reduction – Through the resources and technology they have, they are able to minimize the risks you would normally experience. They will have the ability to identify potential risks early on, allowing enough room to mitigate if needs be.

9. Flexibility – Outsourcing has the flexibility to adjust to the rapid changes, movements, and complexities that are experienced within the supply chain. To manage those kinds of changes internally may even be the cause of risks within the supply chain.

10 things you will learn from a third party quality provider - International Logistics

10. International Logistics – International export and import require a fair amount of logistics and management to make sure your product gets to you safely and in good condition. An outsourced company is capable of managing all of your international logistics from factory inspections and compliances to the testing of your product internationally.

Outsourcing your quality and logistics procedures will have effects for your bottom line but can also create the opportunity to enhance your brand’s quality, credibility and efficiency helping you to maintain a competitive advantage within the market. As you consider your current logistics and quality processes you may look at the benefits of outsourcing this next time round.

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How purchasing departments benefit from better QMS

The harshest judge of the quality of a product is your customers. As a households goods quality manager, it is your responsibility to ensure the systems and procedures you have in place, run as smoothly and effectively as possible. In this blog post, we look at the role of a quality manager and the benefits of adopting quality management systems as a part of your supply chain strategy. It may be necessary, to begin with, an appropriate definition of the role of a quality manager to help put perspective on how they can assist purchasing departments with their quality systems;

A quality manager’s role is “concerned with monitoring and advising on the performance of the quality management system, producing data and reporting on performance, measuring against set standards.”

Understanding the role of a quality manager leads into understanding what a quality management system (QMS) is:

“A QMS is a set of policies, processes and procedures required for planning and execution of a product or service.”

Quality management systems - Management-1.jpg The purchasing department of any organization has many functions from procurement of raw materials all the way through to the load testing of various household goods through to policy compliance. Each of these components requires the leadership and technical skill and know-how of a quality manager to ensure the entire procedure is run effectively and according to set quality standards. Quality managers can improve the quality systems within purchasing departments by ensuring there is a set of quality standards and metrics that need to be achieved, these standards can be anything from load testing results, to the delivery times of material or of the end product. It is essential to work closely with purchasing departments to develop relationships and collaborate with suppliers. This will have results for the quality of your systems and your end product.

Check out our comprehensive guide on optimizing your quality assurance systems.

ISO 9001: 2015 ISO 9001: 2015 is an example of a QMS, which is a set of requirements a supplier needs to comply with to consistently meet specific requirements and that they also meet a specified set of regulations. Applying this ISO standard can have significant benefits for your brand, let’s take a look at some of the key benefits it can have: 1. Improvement of your credibility and image Quality management systems .jpg Every brand strives to increase their credibility within the global market, this standard can help you maintain that competitive advantage, as suppliers who have this standard are often selected over and above those who do not. 2. Improvement of customer satisfaction – At its very core this standard is about the improvement of customer satisfaction, through thorough planning and efficient implementation where the end user is satisfied with the functionality, quality of the product to the way in which it was delivered. 3. Better process integration – By understanding and analyzing your processes you will clearly be able to find improvements that need to be made. These are based on hard that is collected to make these improvements to your procedures. 4. Improve your evidence for decision making – Evidence-based decision-making is based on hard data. Decisions can then be made based on data which can allow for proper allocation of resources and in turn having cost benefits for your brand. 5. Create a continual improvement culture – By instilling a continuous improvement cycle within your buying office, you will not only increase your outputs, but also the quality and standard of your procedures and end product, and also creating that customer satisfaction. A Quality Management system is essential to ensuring quality household good products and the processes that come from your purchasing departments. This will provide accountability and sustainable relationships with your suppliers as they strive to meet a set of global standards. This can have far-reaching implications for your brand. What is your experience in adopting a QMS within your purchasing departments?

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A Supply Chain Management System To Optimize Supply Chain

Global retailers have large complex supply chains, to efficiently manage these they have to adopt a variety of tools and software to ensure an effective supply management system. In this blog post, we take a look at a few of the tools global brands use to manage this supply chain complexity. 1. Technology Using technology as part of your supply chain management is becoming essential to remaining globally competitive. It can be used to for real-time tracking of your orders, to real-time inventory updates. The analytics that you receive enable visibility, early forecasting of potential risks and early identification of systems that may not be working. Technology is used to simplify your supply chain, thus reducing operational expenses and overall timing.
  • Dako, a UK Furniture retailer uses Transportation Management Software (TMS), such as STREAM which is a particular technology that can be used to track shipments, map routes and also keeps track of inventory in real-time, minimizing supply chain challenges.

Supply chain complexity - supplier partnerships .jpg2. Strategic partnerships

By creating an emphasis on supplier relationships, it becomes possible to establish collaboration with the moving parts of the supply chain. This is done through clear communication of goals and expectations, through stakeholder buy-in which creates a vested interested in the outcome of the quality of the product. This, in turn, fosters a relationship which results in system innovation and supply chain transparency.

  • Supplier Relationship Management (SRM) is driven by consistent, clear interactions between the supplier and buyer, SRM programs build new capabilities that enable strategic sourcing and procurement. Effectively applying SRM as a part of your strategy can help achieve greater quality in your product and a faster time to market.
Supply chain complexity - warehousing.jpg 3. Inventory management tactics Managing inventory is all about balance. Making sure that you don’t have too much inventory thus face the risk of increased storage costs and a longer time to market having an effect on your return. You also need to make sure you don’t have too little inventory forcing people to shop elsewhere for a similar product. Both sides of the equation can have detrimental effects for your brand. Here we look at two inventory management tactics that are applied by two of the biggest global retailers:

Check out our comprehensive guide on optimizing your quality assurance systems.

  • Cost per touch:  This strategy is employed by IKEA, and is centered around the idea that each time a product is touched within the supply chain process, it is charged accordingly. This tactic empowers the customer and also brings them into inventory management. This system has encouraged customers to go as far as collecting their product from the nearest IKEA warehouse as well as building their item at home, therefore reducing the number of times the product was touched and reducing the end costs.

`supply chain complexity quality control .jpg4. Quality Control

Often times the quality department or team is over-looked when trying to optimize the supply chain for procedural efficiency. As a good quality control manager can help to minimise human errors within the production processes. The aspect of quality affects nearly every step in the supply chain process from raw material inspection to the final product. You may want to take into consideration the value of these departments working together as they can provide overall supply chain process efficiency, saving you time and procedural expenses.

5. Focus On Core Competencies Your brand may not have the expertise to effectively manage quality systems. Therefore it may be of benefit to outsource the management of your quality procedures to a trusted quality provider. There are many benefits to this approach from the time it takes to testing a product as they have the right technical skills which has a faster turnaround time to also having great cost benefits. The above tactics help reduce the amount of moving parts that encompass the supply chain, with fewer moving parts, one can reduce potential risks and costs over time. This creates an efficiency and a level of quality in the supply chain that was never there before. A supply chain management system consists of complex procedures; the above tools seek to simplify these through greater visibility and transparency creating a level of quality and efficiency that is globally competitive. Which of these tools have you adopted? What is the greatest efficiency that you have experienced through adopting any of these tactics?

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QA Procedures To Optimize Your Supply Chain Efficiency

Do you need to optimize your current quality assurance procedures? Are you unsure of how to get started? Determining the current position of your quality systems may be a difficult one to get your head around with complex procedures to analyze and the newest technology that is just too expensive to get your hands on…In this eBook we look at how you can optimize your current systems through strategy and thorough analysis and planning, that will put your brand in a position for opportunity and growth. Download our FREE guide on optimizing your quality assurance systems. Doing this will not only increase your brand’s product quality, but it will also enhance the credibility of your brand increasing your competitive advantage.

Check out our comprehensive guide on optimizing your quality assurance systems.

In this guide you will be able to:
  • Clearly define the quality challenges that you are currently facing
  • Clearly define solutions that you can apply to your current systems for improvement
  • How can you implement the solutions into your quality systems
  • We also take a dive into how global brands are adopting different quality solutions and what things we can learn from them
You don’t have to spend a fortune trying to get the latest and greatest technology to plug into your supply chain. It’s all about being strategic and analyzing the unique challenges and needs within your supply chain and then adopting a technology to suit exactly that. quality assurance procedures
IKEA, for example, needed a way to reduce their supply chain costs, so they did, through analysis and planning they came up with a concept called Cost-per-touch, this method is based on the number of “touches” a product receives throughout the entire supply chain process right up until a customer buys the product. This concept allowed them to reduce their costs, but also helped them achieve a better inventory management strategy. This concept through strategic planning and analysis was also innovative in its application. It will be important to keep an eye on what global brands are doing so that you may make continuous improvements to your supply chain to maintain that competitive advantage through a fully optimized QA procedures.

Are you ready to begin optimizing your quality assurance procedures?

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Where Regional Brands Fail and Global Brands Succeed

Over the years there have been shifts in the supply chain, where gaining a competitive advantage through your entire supply chain can be essential to your success. It has become virtually impossible for a company on its own to reach this position. Today we see the power of the market in the customer’s hands, therefore without an agile, flexible supply chain, you may not be able to keep up with the demands of the market. It is an ever-changing landscape, that is defined no longer by the designer. In this blog post, we take a look at where regional household goods brands fail and what successes they can take from global brands.

Regional Failures

There are many reasons that can cause a regional retailer to experience supply chain failures, here we dive into a few of these reasons:

1.Risk Management strategies – Risk is a part of any and every supply chain. Regional retailers often put out fires all along the supply chain instead of preventing fires thr ough risk prediction. Many companies do not understand the value of having a risk management strategy, there is often the misconception that it is a costly strategy to have in place, while there is a cost to implementing this. Take into consideration what risk can cost you, more or less than having a strategy in place? This is multi-faceted and requires a strategic approach.

2.Delivery delays – With customers defining market trends and the speed at whichRegional household goods brand - delivery delays.jpgthey need products. You may find yourself at a loss with a delivery delay. Contingency plans are essential to ensuring your product gets to market. A contingency plan allows you to manage this without causing your brand any damage. These kinds of delays cause customer dissatisfaction pushing them to buy your product elsewhere.

3.Inventory Management – Inventory management is a complex procedure from ensuring you have enough inventory on hand to ensure you don’t run out of inventory in your warehouse. Both sides of this coin can have detrimental effects for your brand. Regional brands do not often know how to manage this balance effectively rendering the product either unwanted or leaving customers unsatisfied. Regionally inventory management is often done manually; this causes inconsistency with too much room for human error. This kind of procedure can often be costly and time-consuming.

Check out our comprehensive guide on optimizing your quality assurance systems

Global Success

Global brands, have much larger and more complex supply chains to navigate and therefore face the same potential failures regional brands do, but this larger, more complex web of intricacies requires an efficient, well communicated operating procedure for every step of the process.

Regional household goods brand risk management.jpg1.Risk Management – Global brands take every procedure into account when understanding possible areas of risk. From sourcing to logistics to inventory management, each of these areas affects one another. If there is a problem with sourcing, it inadvertently affects the logistics of the entire operation. Therefore a brand such as Amazon needs to have a Risk Mitigation strategy that spans the entire operation.

An example of a risk strategy would be the adopting visibility tools that are used to keep track of various shipments in real-time that also enable you to take action in the case of a delay.

2.Delivery Delays – Global brands use software with real-time updates on their shipments. This technology helps to identify any problems or deficiencies in a timely manner. While this may not be preventative, it does make sure there are no surprises. To prevent these kind of mishaps, using a Transport Management System which promotes cross network communications.

 3.Inventory Management – When it comes to managing inventory on a global scale it is safe to say that softwareRegional Household goods brand - inventory management.jpg should be used. Automating this processes allows for transparency and an up to date inventory procedure.

Zoho Inventory is software that enables you to manage and keep track of your orders and inventory with real-time updates, keeping you ahead of your supply chain.

The above challenges don’t have to mean the end for your brand. Begin assessing which of these strategies will provide the biggest benefit to your supply chain, while some of them may cost you to put in place, ask yourself whether or not it may be worth it in the long run. We cannot predict the future or the way in which supply chains function under pressure, but you may want to find yourself in a position where you have the best possible strategies to deal with whatever challenges may come up, minimizing the potential risks your entire operation may face. The above-mentioned failures are to enlighten the perception around these specific strategies, with clear communication, an effective strategy and a plan of action you are likely to begin addressing those pressing supply chain challenges that you face. “Are you a brand that has struggled with the above mentioned?” “Were you able to address your challenges successfully?”

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4 Supply Chain Best Practices for Regional Brands

We live in a fast-paced environment with trends coming and going, before there’s even been a moment to catch up. As a regional quality director with increased supply challenges, one may need to begin looking to how global brands are managing their supply chains to start transforming local operations to remain a strong competitor at the top of current trends. In this blog, we look at what supply chain best practices you can begin implementing from a regional context.

Collaborative Strategic Sourcing 

This approach highlights the collaborative approach of engaging suppliers in long-term partnerships with active involvement in the decision-making process which allows room for feedback and information sharing from your suppliers. This creates an investment in the end product or outcome which ensures full client satisfaction. This, in turn, can lead to constant improvements along the supply chain. The more strategic you are with the optimization of your supply chain the more you are then able to reduce various risks that come up along the way. Decision Making supply chain solutions.jpg

Corporate Social Responsibility

Corporate social responsibility (CSR) is becoming essential for all supply chains to adopt. Suppliers who adopt CSR are taken into stronger consideration over and above those who do not. Brands increasingly want to partner with suppliers who can provide them with environmental compliances and want to know what green initiatives they run to partner with. One of the best ways to begin understanding how to implement these solutions regionally is to look at a global brand that has had its fair share of supply struggles. Herman Miller is a good example to do this with. Supply chain solutions - CSR.jpg Miller is seen as instrumental in paving the way with greening the supply chain from using a green design for their products, to ensuring they use less harmful chemicals within the products. The only way they were able to do this was through gaining supplier buy-in. They asked their suppliers to begin complying with the zero-waste policies within their procedures.

Herman Miller has used greening their supply chain as an opportunity for innovation. They have been able to create new uses for material and product that were otherwise disposed of to the benefit of their product and brand. These kinds of innovations have huge benefits as they continue to pave the way as a strong globally competitive brand with green initiatives at the fore of every process they follow.

As consumers increasingly dictate what manufacturers make, the power of adopting CSR and green initiatives as part of your strategy can have global results for your brand.

Check out our comprehensive guide on optimizing your quality assurance systems.  

Third Party Quality Assurance

Your supply chain is directly linked to your brand image; it is, therefore, imperative that you have an efficient supply chain management strategy. You may find that your brand could benefit from adopting third party QA. The challenges experienced along your supply chain are often full of complexities, through outsourcing all of your procedures to a compliant QA company your brand’s image is taken care of. The QA solutions that are offered are tailored specific to your needs and the ever-evolving changes.

Technology

Global brands are known to adopt various technological solutions to Supply chain solutions for regional brands .jpgeffectively manage their supply chains. Regionally there is the thought that this may be too expensive to apply. When it comes to technology, it is too easy to jump to the first software you find.  It is essential to understand what you need technology to do for you, so that you may select the type of technology that is best suited to your needs. By doing this, you are ensuring that this is not overly costly for you and maximizes its efficiency for you.

These are only a few of the supply chain best practices that can be implemented regionally. Always review your procedures to work out what will work best for you, don’t find yourself in a position where you have adopted the first solution you’ve come across with no noticeable evidence of the benefits it has for you and your quality procedures. The point is to optimize your supply chain for the best possible outcomes for your brand. What solutions do you use to optimize your supply chain?

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