Information & Training. | Quality Assurance. Quality Management.
Supplier Risk Assessment
The success of a business is directly linked to the performance of its suppliers. Where a supplier is delivering a product or service that provides a key contribution to the final make-up of the product offering of a business then the risk associated with any deviation from expected levels of performance can significantly impact the business. Risk can arise from a range of potential causes which can be categorized as follows:
The Principles of Quality Management
The Quality Manual
Quality Standards and Specifications
The Quality Management System
Revised requirements of ISO 9001: 2015
Design Quality – Products & Processes
Good Manufacturing Practice (GMP)
Documentation
CAPA – Corrective And Preventative Action
Calibration Certification
Change Management and Control
Quality Management Training
Product and Process Validation
Supplier Quality Assurance
Audits & Auditing
Ensuring the Quality Management System is Risk based
Etc. …. Etc. …. Etc. …
Information & Training presentation >>>
– Failure to provide expected quality, delivery, service, price or reliability expectations.
– Financial failure, which can impact on ability to provide contractual requirements.
– Environmental factors such as weather events which can disrupt supply.
– Regulatory compliance within a supplier which could in the extreme, result in product recalls, market place exclusions.
– Human factors such as strikes or loss of key personnel with specific competences within a supplier organization.
– Supply chain failure. A supplier may in turn have a series of sub-suppliers, any one of which could negatively impact the smooth flow of products or services.
– Relationship between supplier and customer, needs to be positive, with an open flow of communications. A deterioration in the relationship could negatively impact on the provision of products or services.
The potential risks associated with each supplier which could arise needs to be identified, the potential severity on the business of each risk needs to be estimated and from this information an overall level of risk associated with each supplier will be determined.
Supplier Risk Rating:
The overall supplier risk will equate to the probability of a risk arising multiplied by the estimated severity, to give a risk rating number.P * S = Risk Rating
Where, “P” is the Probability of a risk arising and “S” equates to the estimated Severity associated with each risk.
Those suppliers with the highest risk rating will require the greatest level of focus. The severity will be influenced by the potential impact on the business, therefore, a supplier who provides a product or service that has minimal impact on the final product offering will only have relatively low risk ratings, however, a critical supplier may have high to unacceptable overall risk ratings.
In developing a supplier risk assessment program, the overall risk rating can be applied onto a chart to help visualize the relative levels of risk. On the rating chart, the locations of suppliers can be recorded, also over time the change in risk associated with a supplier can be tracked. Objectives can be set for risk reduction to ensure all suppliers reside with a “medium” and preferably “low” risk category.
Information & Training. | Quality Assurance. Quality Management.
- The Principles of Quality Management
- The Quality Manual
- Quality Standards and Specifications
- The Quality Management System
- Revised requirements of ISO 9001: 2015
- Design Quality – Products & Processes
- Good Manufacturing Practice (GMP)
- Documentation
- CAPA – Corrective And Preventative Action
- Calibration Certification
- Change Management and Control
- Quality Management Training
- Product and Process Validation
- Supplier Quality Assurance
- Audits & Auditing
- Ensuring the Quality Management System is Risk based
- Etc. …. Etc. …. Etc. …
- Information & Training presentation >>>