Manufacturers are still not happy with many of their suppliers in providing them with quality goods and services, according to the American Society of Quality. One third of the manufacturers responding to ASQ’s annual survey said they expect a problem with a supplier in 2013, “resulting in a shortage of parts or services. Of the respondents who anticipate a problem with a supplier, 42.1 percent say they are working with partners on process improvements to mitigate volume capacity, while more than 26 percent are working with their suppliers’ competitors,” says ASQ. “Other manufacturers say they are stockpiling parts in advance of the issue and expanding facilities to make necessary parts themselves.”
When they were asked about their past dealings with suppliers, 80 percent said they have been adversely affected by a supplier’s inability to meet their needs. Of those impacted, 25 percent went to their suppliers’ competitors to get the needed parts. “Just more than 30 percent worked with their suppliers on process improvement to mitigate volume capacity constraints,” says ASQ. “Other manufacturers worldwide used up available inventory, manufactured the parts in-house, shut down production or refocused efforts on other production areas.”
Sixty percent of the respondents said their company has a system in place to address supply chain risks, while 28 percent said they have no such process. The survey results also show that the quality of materials trumps availability, price and customer service when manufacturers consider suppliers.
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