In our modern economy, business decisions are made based on the forces of the global supply and demand network. In many cases, outsourcing just for cost savings is no longer an optimal strategy. Rather, across a global network, market-leading companies are trying to balance a diverse set of needs, which includes responsiveness, quality, and innovation as well as cost. In such an environment, many companies are attempting to engage in off-shoring, near-shoring, and on-shoring strategies all at the same time. So what steps do executives need to take to excel and lead in such an environment?
LNS Research believes that engaging in Supplier Quality Management can effectively optimize the global supply chain, while concurrently reducing external risk exposure. As is the case with managing any risk, we advise taking the following approach: assess, quantify, prioritize, and then mitigate. Many companies are following this systematic risk management framework, using it as the basis for Supplier Risk Scorecards. Increasingly today, Enterprise Quality Management Software (EQMS) offers Supplier Risk Scorecard modules, providing a scalable, standardized solution for companies aiming to globally deploy the functionality.
This research paper is for quality management leaders interested in transitioning to a proactive approach to Supplier Quality Management. It analyzes LNS Research’s systematic Supplier Risk Management framework, and then provides real-life perspective with from Brian Rhatigan, Director of Supplier Quality Assurance at Catalent Pharma Solutions, a global leader in development solutions and advanced delivery technologies for drug, biologic, and consumer health products. Specifically, this report covers the following:
- LNS Research’s Approach to Supplier Risk Management: Assess: Quantify, Prioritize, Mitigate
- Executive Q&A with Director of Supplier Quality Assurance at a leading Life Sciences company
- Lessons Learned and Actionable Recommendations