Dissecting a Supplier Performance / Quality Breakdown

In China, it's clear to me that you get out of supplier relationships what you invest in them. If you want only a cheaper price for what you're sourcing, but do not want to invest in proactive quality control and supplier performance management, then chances are that you'll run into issues at some point -- perhaps with the first container. But a lack of supplier performance management insight and controls can also impact companies who've been at the low cost sourcing game for some time. Recently, Dave M. at Buyer Analytics linked to a recent post of his and subsequent articles in the press about quality control and production monitoring breakdowns At Mattel. I won't repeat his words here, but I strongly encourage you to check out his synopsis of how supplier performance management approaches can breakdown even in more sophisticated and experienced organizations.

- Jason Busch