Over 1800 senior executives and quality professionals were interviewed as part of a recent global Forbes Insights report. “The focus relates to the links between quality efforts and corporate performance, as well as the evolving business value of quality.”Of those surveyed, 58% of senior executives and 43% of quality professionals identified quality issues with suppliers as a “Most Vexing Yet-to-Be-Resolved or Ongoing Quality Issue.” 57% of senior executives and only 25% of quality professionals also identified delays from suppliers in product or service delays as an ongoing issue.
At Pro QC, we believe that most of the common issues identified with suppliers can be addressed through the process of careful selection and continuous improvement. Utilizing local, on-site expertise when sourcing abroad adds value and reduces the associated costs.
Additional highlights from the Forbes Insights report include:
- 37% of established organizations formally and extensively measure the impact of quality, in comparison to 10% for struggling organizations.
- Customer demand for quality saw the highest total (67%) within the Top 10 Enterprise Quality Drivers. Other top rated drivers include brand reputation reliability, customer value, profitability, brand value, and competitive differentiation.
- Within the Top 10 Business Areas Touched by Quality Initiatives, “production” was identified by 56% of established organizations in comparison to only 39% of struggling organizations. 48% of established organizations identified “supplier management,” in comparison to 27% of those identified as struggling.
- Close to half of senior executives and quality professionals in this survey report that their quality efforts have increased profitability. A total of 47% attribute profitability growth to their continuous improvement efforts. One in five credit significant growth, exceeding 5% in the most recent year.
- The estimated annual cost of yet-to-be resolved or ongoing quality-related issues is 1-5% of revenue for 30% of the total surveyed. For 20%, it’s more than 10% of revenue.
How does your organization fare? Check out the Forbes Insight report here.