mutually beneficial supplier relationships and quality management

Much like customers and employees, suppliers are one of the key stakeholders in your business. They can directly impact your quality management system.

Primary benefits of mutually beneficial supplier relationships

ISO defines the principle of mutually beneficial supplier relationships as follows: “An organization and its suppliers are interdependent, and a mutually beneficial relationship enhances the ability of both to create value.”

The main benefits of establishing mutually beneficial relationships with your suppliers include:

  • increased capacity to create value for suppliers and the organization
  • flexibility and faster joint responses to changing market conditions or customer requirements and expectations
  • optimized costs and resources across the board.

Steps to improve supplier relationships for better quality management

By working together with suppliers, organizations can provide a greater level of service to their customers and other stakeholders, and further improve their quality management process.

principles of quality management
Relationship management is one of the key principles of quality management.

To ensure a greater level of commitment to quality management within the organization, the following steps can be taken to apply the mutually beneficial supplier relationships principle.

1. Identify suppliers

Identify the suppliers who have an impact on your quality management system. This will help identify any suppliers who may need to be replaced.

Suppliers should be selected for the value they add to the organization, as well as their approach to the supply chain.

2. Develop relationships

Develop supplier relationships that foster short-term advantages for both parties and long-term concerns for the organization.

This will ensure a greater level of commitment to quality across both the suppliers’ and organization’s operations.

3. Communicate

Develop clear and open communications to ensure transparency and accountability between suppliers and the organization.

You must be able to trust that your suppliers will be honest and won’t hide any shortcomings that could affect the quality of your products or services.

4. Cooperation

Both the organization and suppliers should cooperate on the development and enhancement of products and processes.

This is mutually beneficial because it ensures the best level of quality for the organization as well as the supplier.

5. Customer needs

Create a clear understanding of customer needs within the organization and with suppliers, so everyone is on the same page.

This will help ensure that suppliers fully understand your customers’ needs and expectations, so they can deliver the best level of service.

6. Goals and targets

Share information on the organization’s forthcoming goals and targets. A good supplier will want to work together to achieve these goals.

All supplier relationships should be symbiotic. Both parties should benefit from the relationship. This makes it in the supplier’s best interests to help you reach your goals.

7. Improvements

Recognize when your suppliers make improvements and celebrate their achievements.

This helps maintain a positive relationship. It motivates your suppliers to continue to strive for improved quality.

Some organizations may reward suppliers who show continued improvement.

How isoTracker can help

Any quality management system (QMS) can benefit from establishing a trusted and open relationship with suppliers that benefits both them and the organization.

Many of the above steps can be more easily facilitated if you use a centralized, secure software system to manage your QMS.

Our modular quality management software can help you to consistently deliver a quality product or service.

Get full access with our 60-day free trial and see how our software can help you build mutually beneficial supplier relationships.