Impacts of Supplier Quality Management on Distribution Channels

Running Head: Supplier Quality Management.
Impacts of Supplier Quality Management on Distribution Channels.
Date of Issue.
Supply has been one of the most expensive and inefficient management practice that has led to high cost of finished products and the inability of the producers to meet the demand of the clientele populace. This project aspires to provide the perfect distribution channel from the supplier’s angle by revolutionizing the process of product movement to the end user. Distribution channel is the pathway that a service undergoes up to the consumers premises.

1. What is Supplier Quality Management?
This is the assurance that a client has on the capability of a certain supplier to deliver quality goods and services to the end user as per their tastes and preferences.
a) What is the importance of SQM in a Distribution channel?
Customer satisfaction is the primary determinant of how well a certain supplier will maximize the profits hence the quality of services offered is critical to the supplier. The global market environment is perfectly competitive hence the best supplier will command the market.

2. What is the supplier quality assurance process?
This is a strategic mix of steps that ensure that the customer gets the best quality of good and services hence winning the customers loyalty. There are nine steps making up the supplier quality assurance process. Listed below:
Distribution Objectives.
· Efficiency. Delivery speed to be maximized at an affordable cost.
· Exclusive vs. Intense reach. To develop the best distribution route with minima intermediaries and guarantee quality and frequent supply.
· Technology. Maximize the use of technology to easily engage potential clients on a stable site.
Both qualitative and quantitative research methods will be adopted for this project. A descriptive design will seek to evaluate the impact of technology in developing the flawless distribution channel. Primary data will be collected from 20 sample supplier channels. Qualitative analysis of the data will derive the explanations and interpretations of the findings on the existing distribution channels.
General objective.
To research on how to develop the flawless distribution channel that is efficient, cost-effective and profitable to an entity.
Specific Objectives.
1. What is the relationship between cost, technology and intermediaries in a distribution channel?
2. What is the role of technology in revolutionizing a distribution channel?
3. What is the role of SQM in development of the flawless distribution channel?
4. What are the key metrics to Revolutionize distribution?
There are five key metrics of application for scoring supplier quality management.
A). Cost of quality- Evaluates the price acquired by an entity to produce certain product. (Cost of good quality & Cost of poor quality).
B). Overall Equipment Effectiveness (OEE). – appraises the frequency of asset availability (OEE=Availability X Efficiency X Quality First).
C) Percentage of product in compliance. –measures the authenticity of the legal compliance as per the specific industry.
D).Punctual and complete consignments. Focuses on on-time delivery to the customer.
E).New Products introduction (NPI). – Tackles the percentage of new brands manufactured to meet new needs and increase competition in the market.
What is the Supplier Quality Management Evaluation Process?
Which criterion is employed by the supplier to ensure that the distribution channel is flawless? There are four key approaches. Under the appraisal process all in the spirit of efficiency. They are:-
1. Peril Criterion Appraisal
2. Inventory stratagem.
3. Analysis of regularity suppliers is audited.
4. Assessment of Audit Primacies.

5. What are the approaches put in place for refining supplier quality management?
How good is the management of an entity ready and keen to remain competitive and relevant in an incessantly changing market environment?
6. References.
Agus, A., & Hassan, Z. (2008). The strategic supplier partnership in a supply chain management with quality and business performance. International Journal of Business and Management Science, 1(2), 129-145.
I-Ki, Y., & Kwai-Sang Chin. (2004). Critical success factors of supplier quality management. Asian Journal on Quality, 5(1), 85-109.
Szwejczewski, M., Goffin, K., Lemke, F., Pfeiffer, R., & Lohmuller, B. (2001). Supplier management in German manufacturing companies: An empirical investigation. International Journal of Physical Distribution & Logistics Management, 31(5), 354-373.
Theodorakioglou, Y., Gotzamani, K., & Tsiolvas, G. (2006). Supplier management and its relationship to buyers’ quality management. Supply Chain Management, 11(2), 148-159.
Weiss, M. S. (1998). How to ensure supplier quality from your supplier management program. Hospital Materiel Management Quarterly, 19(3), 1-10.
Pearce, G. & Jamson, P. (2012). Taking Control of Supplier Quality: five best practices for implementing a successful supplier governance program. Quality Insider.

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