The Complete Guide to Supplier Quality Management Software
Supplier quality management (SQM) is one of the critical components of successful business operations. The complexity of managing supplier relationships and ensuring product quality across an entire supply chain continues to grow. Inadequate SQM can lead to various challenges, from delayed deliveries and damaged goods to compliance violations and lost business. Businesses face a high risk of financial loss and reputational damage if suppliers fail to meet the expected quality standards. A study by PwC highlights that 70% of companies have faced disruptions due to poor supplier quality. The cost of failure in supplier quality management is often underappreciated. Manufacturers report millions of dollars in losses annually due to defective products, poor supplier performance, and production delays. The cost of poor supplier quality can exceed 10% of a company’s annual revenue. However, the good news is that businesses can significantly reduce these risks with the right Su...