Category: Supply chain

The Value of Expediting in Supplier Development

It’s not uncommon for us to receive calls and emails related to issues organizations are having with expediting orders, either from new or existing suppliers.

By expediting, the assumption is that a delivery date or other expectation has been provided, but is not being met. Reasons for delays in production might include:

  • New sub supplier
  • Equipment issues
  • Key staff turnover or other lack of resources
  • Packaging issues
  • Larger orders from other clients taking a priority

Whatever the reason(s) might be, communication can quickly become an additional layer of complexity as the supplier continues to assure the buyer that all is well and on schedule.  No fun for anyone involved here.

A quality solutions company, such as Pro QC, can recognize when product quality control might not be the issue.  In some cases, the supplier just needs support to address the root cause issues.

Having a local quality professional assist in expediting adds value:

  • Local follow-up can include regular calls and/or on-site visits as required. Accountability is increased. Any potential language and/or cultural issues are addressed.
  • On-site evaluation of issues noted can be evaluated. Corrective actions are developed and implemented.
  • If the supplier lacks internal resources, a company like Pro QC can allocate internal experts to the team to assist as necessary.
  • Weekly reporting (or other frequency as needed) reports progress and provides advance notice of potential delays or new issues. No more surprises.
  • Regular calls between the supplier, Pro QC and buyer presents opportunity for discussion of various perspectives and options as necessary or required.
  • Professionals on-site are able to evaluate the issues and current situation. A non-biased recommendation can be made to identify new suppliers depending on the conditions or other at the supplier location.

Supplier development solutions are customized depending on needs and the priority of those needs.  Development activities can incorporate a range of services and resources, from product testing to compliance auditing. Whether it’s expediting, inspecting, auditing or testing, an organization with experience and a global presence can find the right mix of resources to address and solve problems. Contact us for additional information.

What’s a Living Wage?

A question that comes up often when sourcing abroad is determining what the living wage is and how well suppliers stack up.

Article 23 of the United Nations Universal Declaration of Human Rights states that “everyone who works has the right to just and favorable remuneration ensuring for himself and for his family an existence worthy of human dignity.” And, it’s even noted that Plato and Aristotle discussed the concept as they both argued for “an income that considers needs, particularly those that ensure the communal good.”

How are Living Wages calculated?

“A living wage is the minimum income necessary for a worker to meet their basic needs. This is not the same as subsistence which refers to a biological minimum. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living. Due to the flexible nature of the term ‘needs’, there is not one universally accepted measure of what a living wage is and as such it varies by location and household type.”

Social Accountability International identifies the Living Wage calculation as follows:

To verify wages for suppliers, auditors check records over a period of time and conduct employee interviews. Applicable standards include SA8000, ISO 26000, various or organizational-specific such as WalMart or the Electronics Industry Citizenship Coalition.

Social Accountability International posts Living Wage Reports for various areas within China, Africa, Vietnam, etc.  View the SAI page here. 

Within the United States, MIT provides Living Wage estimates based on states here. 

To learn more about supplier social audits and view example example reports, visit Pro QC’s website.