Supplier management is a fundamental part of a company’s governance and has a direct impact on company performance, quality and environmental responsibility. Effective supplier management helps ensure quality and environmental performance, as well as maintaining good business relationships and trust between companies and their suppliers.
ISO 9001 and ISO 14001 are international standards that help organizations implement effective quality and environmental management systems.
This article addresses the requirements for supplier management within these standards, provides practical advice, and highlights common mistakes companies make.
Requirements and advice for supplier management
ISO 9001 and ISO 14001 impose requirements on the control of external suppliers, their processes, products, services and environmental risks. They emphasize continuous improvement and documentation. To meet these requirements:
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Create a clear process of evaluation and selection of suppliers based on risk assessment based on how they can affect your business in terms of quality and how they affect the external environment.
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Determine criteria for monitoring of vendor performance and follow up through surveys and site visits.
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Integrate climate and environmental requirements into purchasing processes and work with suppliers to reduce energy consumption and carbon emissions.
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Collaborate with suppliers to achieve continuous improvement and encourage certification according to relevant standards such as ISO 9001 and ISO 14001.
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Document and follow up supplier assessments and performance on a regular basis.
Common mistakes and consequences
Avoid these mistakes to ensure effective supplier management:
- Non-factual risk assessment of suppliers and inadequate supplier evaluations, which can lead to lost sales and bad reputation due to, for example, delayed deliveries, additional work to deal with deviations and bad reputation caused by the supplier’s substandard environmental performance.
- No system to track and analyze supplier performance which can negatively affect customer satisfaction and reputation.
- Lack of communication and cooperation with suppliers on quality and environmental issues, which can increase environmental impact, cause non-compliance with environmental legislation and damage the company’s reputation.
Conclusion
Supplier management is a critical component of quality- and environmental management system. By rigorously complying with ISO 9001 and ISO 14001 supplier management requirements and implementing effective processes for evaluating, selecting, monitoring and improving the quality and environmental performance of suppliers, organizations can improve their competitiveness and reduce risk.
To avoid common mistakes, it is important to prioritize communication and cooperation with suppliers, as well as to have a clear documentation and follow-up of supplier assessments and supplier performance.
Take the plunge today and start improving your supplier management to create a more sustainable and competitive business.