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SQP_BD001_PPP_17June10_V2

Supplier Qualification Program (SQP)
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Do you know your suppliers?
Would you be confident with placing orders with this factory?
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Do you know your suppliers?
Do you have more confidence now?
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Traditional Factory Assessment
Excessive focused on procedures Focused on fault finding rather than solutions
Lack of training and continuous improvement
Limited attention to Risk Assessment and Product Safety?
Limited benchmarking
Lack of focus on Process Controls?
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What are the Market Challenges?
Market Challenges :
? High profile recall cases
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More stringent legal requirements on product safety
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Buyers demanding more effective measures for evaluating suppliers manufacturing performance and confidence level on product safety Suppliers wanting to benchmark themselves against competitors.
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Intertek’s Solution: Supplier Qualification Program
? ? ? SQP uses best practice principles of FMEA, GMP, ISO 9000, BRC Aligned with top tier global retailer requirements Process control specific covered:
? ? ? ? Generic Hardline Products Garment Toys Footwear
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SQP allows Data Mining and Benchmarking features.
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Supplier Qualification Program: What's covered?
Personnel Personnel Training Training and and Competency Competency Process Process Control Control
Management Management Commitment Commitment and and Continual Continual Improvement Improvement
Risk Risk Managemen Managemen t t Systems Systems Quality Quality Management Management Systems Systems
? ?Generic Generic Hardlines Hardlines ? ?Garments Garments ? ?Toys Toys ? Footwear ?Footwear
Product Product Testing Testing Product Product Control Control
Site Site and and Facilities Facilities Management Management
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Supplier Qualification Program: Why SQP?
Key Benefits ? Controls and processes in place for managing product quality and safety. Leverages Intertek state of art GSCC audit platform Suppliers motivated through community benchmarking Facilitates continuous improvement through CAP process and CPI accredited training programs for manufacturers. Recognition through Achievement Award motivates factories. Manufacturers can show case their reports and achievement award to clients
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Why SQP? Other Benefits
Cost Savings y Greater focus on prevention cost y Reduction is external failure cost y Resources focused on key issues Better Visibility and Control of Supply Chain y Data mining and benchmarking enables - more informed decision making - increases supplier motivation, commitment and ownership y Allows you to focus on resolution and improvement y Moves from a policemen to partner y Able to communicate what went well and areas for improvement
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Costs
External Failure Costs External Failure Costs Internal Failure Costs Appraisal Costs Internal Failure Costs Appraisal Costs Intertek Sustainable Business Solutions
Prevention Costs
Prevention Costs
Old practice
New practice
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The Cost of Quality
FAILURE COST
Internal Failure:
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APPRAISAL COST
Monitoring & Controls of Suppliers
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PREVENTION COST
Strategic GAP review
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Fire fighting Remedial action and rework Down grading Re-inspection
Risk response strategy Setting governance policy, standards & KPI’s Training and Communication Monitor & Controls Researching customer requirements Statistical process control Professional advise
Inspection of work in progress Internal and external compliance programs (Inspect, Test, Audit) Revise standards to improve safeguards
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External Failure:
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Handling complaints Recalls Loss of goodwill Reduced sales Reduce share value Financial funding Approved supplier
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Audit Portfolios – Tool Kit
Assessment Tools
y y y Self Assessment – Mass Market Quick Scan - Low risk, one off supplier, on boarding pre-assessment Full Service Audit (2-3 Mandays) - Private label, High Risk, Core Suppliers
Performance Recognition
y Achievement Award will be granted to Factories that achieve - Score 85%+ - No critical or major questions - Annual renewal audit and achievement of score - Valid for 12 months
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Sample of Achievement Award
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Sample of SQP Report
Sub-section Benchmarking :
y Risk Management y Quality Management System y Site and Facilities Management y Product Control y Process Control
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Summary – In a nutshell
Supplier Qualification Program (SQP) helps you:
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Approve & qualify suppliers with confidence Create better factories & products Facilitating continuous improvement Achieve greater visibility of your supply chain performance Practical risk based standard focused on process control.
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SQP_BD001_PPP_17June10_V2

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