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Saturday, January 28, 2012

Mutually Beneficial Supplier Relationship

The ISO 9001:2008 QMS standard is based on eight quality management principles and one of the principles is ‘mutually beneficial supplier relationship’. A supplier is a partner of an organization in its product realization. An organization and its suppliers are interdependent. A mutually beneficial relationship between the organization and its supplier enhances the ability to both to create value to each other.

Purchasing is an important activity under the product realization. The organization needs to ensure that purchased product conforms to specified purchase requirements. Accordingly, the organization needs to maintain control on the purchasing process, and thus it requires selection and ongoing review of supplier’s capabilities.

Implementing ISO 9001:2008 quality management system requires adoption of process approach and an organization is not able to improve its processes until the organization is able to get support from its supplier. As a result there is a necessity to improve organization-supplier relationship for mutual benefits.

An organization can take some steps to develop its suppliers. The organization can create partnership by encouraging its suppliers to become customer-focused. It can organize meetings with its suppliers to better communicate purchasing needs. The organization can motivate the supplier to move towards quality management system, if the supplier is not on this way. The organization can organize training for the staff of its suppliers to better communicate issues of meeting requirements and also to develop them.

It is for the organization to think how it can improve mutually supplier relationship and if the organization proactively acts in improving the relationship, the organization will be able to earn following benefits:
• Increased ability to create value for the organization and its suppliers
• Optimization of resources
• Long-term benefits

- DS & KRS

1 comment:

Keshav said...

Mr. Raghavendran S. posted comments at Linkedin discussion at "Management Systems Professionals and Users' group - "Very valid point, Keshav. However it is sad that even big names only pay lip service in applying this principle.

Hardly have I come across organisations making payment to suppliers by due date, forget about organising meetings, motivation, training et al for suppliers.

There is a glaring omission in 9001 that there is no specific requirement built against this principle."