Consumer product companies typically manage a vast and complex production process across different product lines, divisions, plants and regions. The company’s network consists of suppliers, contract manufacturers and packagers, and in-house production teams and is required to meet regulatory, retailer and consumer requirements. In this complex environment, one of the biggest challenges for these organizations is effectively managing quality issues across the supply chain. Companies striving for ongoing supply chain efficiency are thinking strategically about each step in the quality process. A company’s supply chain network typically has hundreds and sometimes thousands of vendors across the globe, but they struggle to obtain visibility into supplier quality. According to RASFF, 30% of companies have limited visibility in to their Tier 1 partners, while there’s little to no visibility in Tier 2 & 3 partners. And with up to 52% of recalls attributed to supplier and contract manufacturer issues, it’s critical to have visibility across the entire supply chain, and to resolve issues where they occur.
Deviations, product waste, rework, and recalls are just a few of the costs associated with poor quality that can negatively impact an organization’s bottom line, accounting for 15-20% of a manufacturer’s total cost.
Reaching Supply Chain Efficiency for Consumer Products Companies
So, how can today’s consumer product manufacturers prevent internal quality and supplier problems from impacting the supply chain?
By establishing standardized quality processes, organizations are better able to identify standards that are not being adhered to or adopted, as well as when and where to take corrective action. To get there, manufacturers need to take advantage of an enterprise quality management solution (EQMS) that coordinates business processes and IT infrastructure with operational processes. This solution simplifies and consolidates these critical processes to provide real-time insight across plants, geographic regions, and suppliers.
Protect Your Supply Chain Infographic
The infographic below shows the risks that consumer product manufacturers encounter when managing supply chain efficiency and quality.