Table of Contents
As companies strive to become more environmentally sustainable, the role of supply chain quality management becomes increasingly important. Supply chain quality management encompasses a host of processes that improve the consumer experience while maximizing efficiency for manufacturers, suppliers, and retailers alike.
What Is Supply Chain Quality Management?
Supply chain quality management is the process of ensuring that products and services meet customer expectations. It includes the coordination of activities between suppliers, manufacturers, distributors, and retailers to ensure that products are delivered on time and meet quality standards. Quality management also involves the identification and prevention of defects throughout the supply chain.
By managing quality at every stage of production, businesses can ensure that their products meet customer expectations and minimize the risk of costly defects.
How Does Supply Chain Management Relate to Sustainability?
Supply chain quality management is an essential part of sustainability. The goal of supply chain quality management is to ensure that products and services meet the highest quality management standards. Sustainability overlaps with supply chain management, as one goal of supply chain management is creating a quality product in the most efficient, low-cost method possible. This may include using energy-efficient production processes or sourcing recycled materials to avoid the need for raw materials. Sustainability’s goals also include efficiency. . In order to achieve high-quality, eco-friendly products, sustainability must be considered at every stage of the supply chain, from sourcing raw materials to manufacturing, packaging, and shipping. Thus, sustainability must be incorporated into the supply chain management system.
By taking a holistic approach to sustainability, businesses can minimize their impact on the environment and ensure that their products and services are of the highest quality. Businesses that embrace sustainability will be better positioned to thrive in the years to come, particularly as many limited raw materials may become less available in future years.
Concepts such as Environmental, Social, and Governance [ESG] are already gaining popularity in the corporate environment. Indicative of this trend, 83% of C-suite executives expect ESG programs to create synergies and build stakeholder value into the future.
What Are Some of the Benefits of Supply Chain Quality Management for Businesses?
Supply chain quality management is critical for businesses if they want to ensure sustainability and continuous improvement. By measuring and managing the quality of raw materials, components, and finished products at every stage of the supply chain, businesses can identify issues early on and take corrective action to prevent them from becoming costly problems later on. Supply chain quality management can incorporate sustainability by making environmentally-focused choices throughout the process.
In addition, supply chain quality management can help businesses to improve their relationships with suppliers by providing them with clear expectations and feedback.
How Can Businesses Improve Their Supply Chain Quality Management Practices?
Improving supply chain quality management practices can be done in a number of ways, such as by conducting regular audits, setting up supplier performance standards, and establishing clear communication channels between different members of the supply chain. These are the same practices that will help a business move towards sustainability. Having a strong supply chain management system in place will make transitioning to sustainable practices easier and more efficient.
Reducing emissions, including Scope 3 emissions (the emissions throughout a company’s value chain), can make a business’s brands more attractive to consumers and contribute to setting important environmentally-friendly market trends.
Overall, improvements in efficiency can only benefit an organization's viability. For example, working with suppliers and other stakeholders who are committed to sustainability can boost quality management practices. Creating a chain where each link benefits from improvements helps strengthen individual companies' sustainable business models while promoting collective industry action.
Putting Ethics First
Transitioning to a business ecosystem where environmental ethics take a central role alongside profitability can guide corporate giants to adopt efficient supply chain practices. Leveling the playing field to favor the environment can bring a new age of healthy competition where respect for the Earth drives innovation and productivity.