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The growing importance of supply chain control

20-10-2020

A long time ago, companies were only responsible for the activities within their own company. Over the years, however, more and more points of attention have been added, connected to obligations to the outside world. These obligations arise in the first place in the form of quality assurance and ISO certifications, as a result of which companies must account for the internal course of affairs, by means of audits and certificates.

In addition, there is a growing amount of attention to corporate social responsibility: care for the environment, human rights and working conditions play an increasingly important role in the eyes of consumers. People would rather not buy clothes from a company if the clothes are made by children in Bangladesh or if the environment has been seriously damaged by its production. This trend has been evaluated to such an extent that companies are now also required to account for the partners they do business with and the way they do business with them – in accordance with legislation and with strict supervision of matters such as money laundering. These topics have entered the areas of quality, safety, compliance and risk management.

Dependancy on your suppliers

But an even more important cause of the growing call for strict control of the supply chain, has to do with the fact that the quality of a company depends on the quality of its suppliers. The corona crisis is an example of this. Many facemasks are manufactured in China, which makes it difficult as a seller of masks to check whether they meet the requirements of a working facemask.

If a company can’t control its suppliers – for example because the partner company is located on the other side of the world – they have to manually check each product entering the company. You have to trust that the people on the other side of the world have done their utmost to deliver the right quality. Not only is this inefficient, for example because all products have to be disinfected several times, but it also leads to distrust and irritation between both parties, which does not benefit the cooperation.

Immediate insight into the quality of your suppliers

As a result, companies nowadays have to control not only their own operations, but also those of suppliers. They have to check whether their partners operate in accordance with the rules – taking into account both local requirements and increasingly strict international regulations. In low-wage countries, for example, the rules regarding child labor are a lot more tolerant compared to those in the West. For example, control of the supply chain has become part of the QMS work area.

This is where Icologiq Elements comes into play. Elements is an all-in-one software package that combines all technological, functional and operational processes in one fully digital solution, consisting of nine modules. By giving suppliers access to all procedures and checklists within Elements, which are part of a structural supervision of the role of the supply chain, a company can automatically check whether the products supplied meet the quality requirements. In fact, the system goes a step further than just digitising the internal business processes, because suppliers are also involved in these processes.

About Icologiq Elements

All-in-one software platform Icologiq Elements facilitates process innovation from a central point in the organisation. Its goal is to provide the organisation centrally with the right tools to solve problems, handle complaints, implement improvements, implement change in a structured and safe manner, identify and identify the right risks, and ensuring that people can work safely from any point in the organisation.

The software enables companies to get the best out of their people and teams. By automating routine tasks, they can fully focus on their main tasks. In addition, the fragmentation of local solutions and spreadsheets is converted into a reliable, transparent platform with which companies cover all their processes related to safety, quality, welfare and the environment.

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