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BestPracticesandPracticalInsightsfor2015
BeforeWeBegin
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TodaysPresenters
BrandonHenning
Director,CPGIndustrySolutions
SpartaSystems
DirkDusharme
EditorinChief
QualityDigest
Whatwelldiscuss
Industrychallenges
ValueofSupplierQuality
Management
FiveSQMbestpracticesthat
youcandonow
2013
1999
PRODUCT RECALLS
USexperiences30classI&IIfoodproduct
recallsperweek(USDA).Europeexperiences20
perweek(RASFF) 2013costtotheindustry
over$150BillionDollars
Recall Execution Effectiveness Report, Deloitte, GMA, FMI, GS1. May 2010
52%
are a
Incidents result of
Supplier & Contract
Vendor Issues
Recall Execution Effectiveness Report, Deloitte, GMA, FMI, GS1. May 2010
Industrychallenge:
IdentifyingQualityIssuesEarly
Corporate
Planning&Design
Issue
Resolution
Cost
Supplier
Network
Manufacturing
Facilities
10X
1X
Distribution
Centers
100X
Consumers
1000X
22%
Only
ofcompaniesseequalityasan
integratedfunctionoftheirsupplychains1.
Gartner,SJacobson,Quality:TheMissingLinkinYourSupplyChainStrategy,January2015
65%
80%
51%
of CPG
companies
supplycompanies
chainare
partners
lack
outsourcing
visibility
help with innovation
into their material
suppliers
Suppliers
Manufacturers
quality management
processes
Drives
Operational
Excellence
Prevent
Supply Chain
Incidents
Good News
SamesolutionthatenablesSupplyChaincollaborationalsoassistsyoutoreach
yourOperationalExcellenceandTopLineRevenueGoals
Value gained from installing supplier quality & internal quality management software
Effective Supplier Relationship Management
Quality & Process Improvement
Production Intelligence
Production Execution
Cost of quality reduced
Cost of goods sold decrease
NPI time to market increased
Overall Equipment Effectiveness (OEE) increased
Reduced Average Waste Rate
$90M+
Best Practices to
Ensure Supply
Chain Quality &
Safety
BENEFITS:
Reduce risk of supply chain incidents
Centralize supplier information
Manage cost of audits
ERP
Vendor
Supplier
Site
Whosuppliesus?
Wheredoesitcomefrom?
Arewecompliant?
Whatsnext,overdue,pendingfollowup?
Audits
Findings/
Actions
2. Supplier Onboarding
Material Qualification
Supplier
Site
Ingredient
BENEFITS:
Brand protection & corporate social
responsibility
Reduce scrap and waste
Reduce new product time to market
Certifications
Questionnaires
Ingredient
Spec
Questionnairestoassessrisk
Auditsforingredientrisk
Category/subcategory
Status
Conditionallyapproved
Fullyapproved
Linktospecandspecversion
Whatnewingredientsneedtobequalified?
Whatnewsitesneedtobeonboarded?
Whatsitesprovidewhatingredients?
3. Supplier Verification
Whatsuppliersitescansupplywhatmanufacturing
sites?
Whatsuppliersitesareimpactedbyachangetothis
versionofthespec?
SupplierSite
Mfg SiteA
Mfg SiteB
Ingredient
BENEFITS:
Reduce Cost of Good Sold
Mfg SiteN
Ingredient
Spec
Supplierdriven
DrivenbyR&D
SupplierNC
/Event
InternalNC/
Event
Market
Complaint
Supplier Performance
On time delivery
COA Issues & Defects
Product to spec adherence
EndtoEnd
IncidentMgmt
Customer/consumer
complaint
Supplychaindefect(i.e.
deliveryissue,qty,
recall,etc.)
Ingredientqualityissue
(i.e.COA,IQATest,etc.)
Manufacturingrunissue
Supplier
SiteX
Stratus
Portal
Investigation
Correctiveactions
Resolution/closure
Supplier
Contact
5. Real-Time Performance
BENEFITS:
Continuous supplier improvement and
collaboration
Operational productivity
Reduce audit and oversight costs
Improved operational and NPI performace
Enhanced
accountability
Product safety
& compliance
Stratas
Visibilityacross
thevaluechain
AuditsontheGo
Insidethefacilityand
withinsupplierfacilities
Food&
Beverage
Quality
System
Analytics
Identifyissues
&trendsearlier
TrackWise EQMS
Mobile
Harmonizedsetof
qualitymanagement
modules(SQM,
Complaints,Incidents&
Investigation,Non
conformance,Corrective
Action)
Approve&close
issuesonthe
road
Questions