There is a growing trend in first world economies that is seeing top companies – especially those that have built their reputations on quality – moving to enforce falling quality standards throughout their supply chain.
This might change the face of business and pressurise companies in the supply chain to greatly improve standards and obtain ISO certification in their particular field, says Dr Richard Lewis, non-executive director at Wynleigh International.
“There is still a problem, however, that some companies merely go through the motions of gaining ISO accreditation and, in a manner of speaking, simply tick the boxes. They then have a fancy piece of paper hanging in their boardroom or in a foyer- but nothing much happens to quality standards. When so many companies are cutting costs, short-sighted leadership take short-cuts on quality standards," he says.
"But as the top companies – those commanding the supply chain – continually seek higher levels of excellence, these under-performing companies will be rooted out. Simply going through the motions is not going to be enough in the near future. If compliance does not bring with it a certain level of standards, these businesses will be affected – they will simply be cut from the supply chain.”
Dr Lewis said that this trend towards commanding supply chain quality from above is rapidly gaining momentum, especially as winning companies seek to reduce reputational risk, enhance their brand and ensure customers receive a quality product.