Module: Supply Chain Management

Supplier Quality Problems During a Global Pandemic How to make sure you still have suppliers that are providing a steady flow of high-quality materials, parts and components. In addition to the humanitarian and societal havoc COVID-19 has played, the coronavirus pandemic is disrupting supply chains across the globe. Manufacturers have ramped up production and worked around the clock to quickly make medical devices and equipment to assist in the crisis. If even one of the many materials, parts or components supplied for use in a medical device or critical lifesaving equipment drops in quality, it can have devastating consequences. Supplier quality is always a serious factor in the medical technology supply chain. But as manufacturers scramble to develop lifesaving products during large-scale supply chain disruptions like the novel coronavirus (COVID-19) pandemic, and as suppliers feel pressure to consistently provide the parts that go into those products, quality is more important than ever. Considering the scale and speed of the impact, manufacturers must ensure their supply chain partners maintain high quality standards while quickly delivering a greater number of lifesaving products. Supplier Quality Problems to Watch For Manufacturers should watch for quality degradation, late deliveries and slow communication. If a supplier with a history of compliant shipments begins delivering shipments with rising scrap rates or nonconforming materials, components or parts, that is a red flag. Quality-related problems to watch for include a rise in failing parts per lot or an increase in rejecting products that dont meet specification. Errors relating to specifications are among the most common challenges in managing supplier quality. For example, critical dimensions are missing, tolerances are off or specifications are outdated. Nonconforming components can create major health hazards, and uncontrolled supplier changes can result in out-of-spec materials. As supply demands increase and processes accelerate, it is critical that a suppliers materials, parts or processes and substitutions or changes to those materials, parts or processes meet the manufacturers requirements. Delays in shipments and responses to inquiries are also warning signs to watch for. An influx of late ship dates often indicates a failing manufacturing process may be affecting the supplier's quality. And when a normally responsive supplier is slow to respond about quality issues or ship dates, it can mean the supplier is avoiding the customer. If the quality problem is recurring and the supplier is failing to identify, correct and communicate the issue to the customer, then products get delayed and consumer safety gets threatened.

Question 1 (20 Marks) In light of the above extract, advise the manufacturers on how they can resolve the supplier quality problems using buyer seller collaboration.