QA Role in

Vendor Management
&
Customer Satisfaction
 Vendor & Partner?

A vendor/ supplier or a sub-contractor is a company or individual that supplies you with

products or services that you use in your business. Whereas,
A partner is a company that provides you with the products and services with a common
goal to achieve.

Vendor Partner
Short-term relationship Long-term relationship
May have different goals Common goals
Micro management Little Vigilance
Inflexible contract clauses Relaxed clauses
Focus on product Focus on processes
May not adopt teaming Teaming approach
Why outsourcing?

Companies decide to outsource because:

 There is scarcity/ unavailability of in-house competence
 There are cost constraints
 There are time constraints

• 60% of the cost of goods sold consisted of purchased goods

• Maximization of return on investment (ROI)
• Introduction of just-in-time (JIT) concept
Supplier Selection Criteria
There are 10 Cs to be considered for considering potential suppliers:

 Competency  Cost

 Capacity  Consistency

 Commitment  Culture

 Control  Clean

 Cash  Communication
Supplier Selection Criteria – QA Perspective
 Company background (Culture)

 Technical Expertise and Capabilities (Competency and Capacity)

 Tools and Equipment (Capacity)

 Clientage (Clean, Consistency)

 Quality Management System (Commitment, Communication)

 Safety and Security (Control)

 Risk Assessment (Control)

Supplier Rating
 Rating is useful in deciding how to allocate purchases among
suppliers for future assignments

 Supplier quality rating provides a quantitative summary of

supplier quality over a period of time

 Provide each supplier with a detailed and factual record of

problems for corrective action
Supplier Evaluation
 Non-conforming Products- ratio of the amount of defective
items received to the total number of items received
 Overall product quality - summary of supplier performance at
incoming inspection and later phases of product application
 Quality Systems Implementation – Quality Plan, Audits and
periodic inspections records
 Health and Safety Implementation – HSE procedures
implemented or not
 Production Capacity – Production as per claimed capacity
 Product Acceptances – Successful acceptances ratio
 Customer Complaints – Response to customer complaints and
resolution
 Financial Handling – Invoicing, change orders and tax submission
Supplier Evaluation
Supplier/ vendor evaluation is different from their pre-
qualification in many areas:

Pre-qualification Evaluation
Potential parameters Performance parameters

Capability study Actual results

Screening Retention

No corrective/ preventive actions Problem solving

No focus on skill development Skill enhancement plans

No future ventures in consideration Upcoming business perspectives

Customer Satisfaction
Customer Requirements & Satisfaction

Continual Improvement of the

Quality Management System

C C
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U e U a
S q
S t
u i
T i T s
O r
O f
e a
M m M c
E e Product & QMS
E t
n i
R t Input R o
S s Output
S n

Product
Customer Satisfaction
 Customer is the one who uses our products by spending his
money that is actually the lifeline of your business.
 CUSTOMER IS THE KING and it is inevitable to satisfy him and
keep him retained.
 Customer satisfaction must be the prime goal of an organization.
Types of Customers
 Internal Customers and External Customers > Both must be
satisfied
 Internal customers are the company employees, people in the
process and each department is a customer to another one.
 External customers are your product users and the ones who
influence the sales of products
 Customers change their needs and must be tapped periodically
Customer Feedback
 Comment Card
 Customer Questionnaire
 Toll Free Telephone Numbers
 Customer Visits
 Internet & Computer
 Employee Feedback
 Customer Complaints