Before the ISO 9001:2015 Supplier Performance Management Webinar, we sent a survey to find out how Quality Professionals rated their supplier management processes and whether their existing processes met the new ISO 9001:2015 requirements for managing external provisions.
This is the first in a three part series discussing the key findings from the survey.
The following article highlights how the revised ISO 9001 standard will require some organisations to update their supplier monitoring processes.
You've evaluated your potential suppliers. You've selected a supplier. And you have specified your requirements from the supplier.
Your supplier has now become an extension of your business.
All your ducks are finally in a row.
Time passes by and your supplier makes the odd mistake here and there, but nothing which your supplier has not dealt with straight away. Perhaps your supplier innovates and provides you with something better. Your supplier adds value to your organisation in ways you had not previously considered. 
You may think that if you are happy with your supplier, you do not need to monitor them. However, during this time you have lost control and visibility of what processes your supplier is using.
Why did they make that mistake and should your documentation be updated to stop this happening again? What new processes is your supplier using? How is the supplier adding the extra value to your organisation?
Your lack of visibility into their processes exposes your organisation to risk. Although we outsource what we do not have the time, expertise or resources to manage, it is important you understand their processes. What if your supplier ceases to exist, increases their pricing or can no longer supply you products, and you loose them?
The value they were adding to your business will instantly be lost.
The Issue:
A small minority of Quality Professionals (6% according to our survey), have already mastered supplier monitoring and follow a systematic process for checking that the supplier is doing what they have previously defined. They have complete visibility of the processes used, understand the competencies of their suppliers and are being pro-active by asking "How can we innovate in our processes?"
However, a large majority of Quality Professionals (80% according to the survey), feel their supplier monitoring and re-evaulation processes are average or ineffective. They do not have a systematic process for monitoring suppliers, do not know what criteria to measure the supplier against or how to get that data. Records are outdated and there is no evidence that processes which have been previously defined are being followed.
Whilst most Quality Professionals do believe the suppliers used by their organisation are good or excellent (74% according to the survey), they are not sure how to quantatively assess supplier performance on an ongoing basis, resulting in a lack of visibility at both a strategic and operational level.
Supplier Monitoring
Without an effective supplier monitoring and re-evaluation process, your company will not meet the new requirements for ISO 9001 standard.
Organisations must supply evidence that they keep records and demonstrate that the practices specified are being followed on an orgoing basis. To do this, organisations must audit suppliers, update supplier records and manage CAPA in a centralised system.
For more information about the new ISO 9001:2015 requirements for managing external provisions, please download the free supplier performance management webinar.
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