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Compliance and audit of Suppliers of Opric, Oman

Category: Business Statistics Paper Type: Report Writing Reference: HARVARD Words: 550

        Opric Oman is known for the quality of its products and services all around the world. For the sake of checking that all the products from the side of suppliers are compliant, this organization has used the strategy of audit and compliance. Using this strategy helps to find a number of factors related to their suppliers. This not only checks the quality in the services of the suppliers but investigate the internal and external factors of the supplier organization. This strategy includes a broader audit of all the procedures that suppliers are using to provide their selected services to the Opric Oman. This strategy is a bit costly, but for the sake of maintaining quality in the procedures and services, this organization is required too management quality in its suppliers. This audit has raised the level of trust and dependence between Opric Oman and its suppliers. The organization has reached the level where its suppliers are not supposed to compromise on the quality as a major part of the supply chain is dependent on them. Opric Oman considers its suppliers as the most important factors in the initiatives all around the world. This strategy took huge time to be implemented but has helped the organization to upgrade its suppliers so the decided quality can be met.

Setting KPIs for measuring the quality performance of suppliers of Opric, Oman

        Opric Oman has set different KPIs with which the quality in the procedures of its suppliers is measured. First KPI is “Completion and delivery of the product”. As Opric Oman is purchasing a number of services and products from different suppliers all around the world, it is their need to keep the procedures done at the right time. In the context of KPI, “Completion and delivery of the product” suppliers are required to meet this KPI. Meeting this KPI assures that the supplier is working properly to maintain the quality. On the contrary, it is clear the if the supplier fails to deliver the products on time then the other production procedures of the organization may get affected. Second KPI is the percentage of the products that are sent back to suppliers because of the defects of broken. All the suppliers are examined under this KPI (Soni, 2014). After getting the results of the analysis, it becomes clear the supplier with the high percentages of defected products is not maintaining the quality levels settled by the organization. This is kind of a competition between all the suppliers of this organization. This strategy is very old and Opric Oman is using this strategy in almost all of its procedures related to supply chain.

References of Compliance and audit of Suppliers of Opric, Oman

Kim, H. J. & Son, J., 2017. Strategy for Improving Efficiency of Supply Chain Quality Management in Buyer-Supplier Dyads: The Suppliers’ Perspective.

Prajogo, D., 2017. The strategic fit between innovation strategies and business environment in delivering business performance.

Quigleya, J. & LesleyWalls, 2017. Supplier quality improvement: The value of information under uncertainty.

Smith, J. L., 2011. Face of Quality: Five Key Strategies to Enhance Quality Culture. [Online]
Available at: https://www.qualitymag.com/articles/88182-face-of-quality-five-key-strategies-to-enhance-quality-culture

Soni, G., 2014. The strategic fit between “competitive strategy” and “supply chain strategy” in Indian manufacturing industry: an empirical approach.

 

 

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