Poor supplier performance? 
 
Are you always chasing them to deliver your orders? 
 
Struggling to keep production operating efficiently due to missing parts? 
 
At Pro Outsourcing we manage our client’s suppliers via the QCD approach. QCD measures are the common processes within procurement and supply chain and can assist the initiative to improve the supplier’s performance in Quality (Q) Cost (C) Delivery (D). The formula visualises the supplier status within the three specific categories, each supplier has a score card that identifies their detailed performance for the three core components. 
 
Quality - The cost of poor quality is increasing and more and more businesses need to invest in monitoring suppliers to save themselves from serious financial threat down the road. Cost of Poor Quality from Suppliers can generally affect your expenditure due to producing defective material, damaging material during delivery & loss of time to resolve. 
 
Cost - It is a known fact that when costs are not well managed, it will result in losses. 
Price of Direct materials keeps fluctuating and without continuous control will cause contribution margin loss. In-direct costs are also to be monitored, but this area receives very limited attention and quite often is a source of overspend. 
 
Delivery - Delays caused by late part shipments can slow down your assembly line productivity; you are also inevitably losing money because employees are not working at their top speed and efficiency cost you money, late supply to your customers can also affect ongoing business. 
 
Sharing this data for regular review highlights the weakest elements in your supply chain performance which can then be targeted for improvement, B2B goals can be set and monitored. 
 
There is nothing magical about this approach, but studies and our extensive experience show that significant improvements are made enabling your operations to run more efficiently. 
 
Score Card example: 
 
Pro Outsourcing have a proven background in improving supplier performance using MCIPS qualified staff to manage order books and can implement KPIs to monitor suppliers and their ability to deliver on time. 
 
Give us a call today, we can help you gain control of your supply chain. 
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