Study of Importance of Quality Control in Supply Chain Management and Importance of Quality for a Business : A Review

Abstract

Supply chain management directly impacts product quality and the overall profitability of a company. For these reasons, quality control in the supply chain is critical for maintaining a competitive edge in the marketplace and reducing operating costs. Without quality control, waste becomes prevalent beyond a tolerable amount.
SCM (Supply Chain Management) is driven and motivated to achieve “least cost possible” when identifying and qualifying new suppliers. In the past two decade the focus of SCM is to contract with suppliers from low cost countries. The SCM department is often recognized for exceeding their annual goals for cost savings. Unfortunately in the life cycle of the final product the initial cost savings by SCM ends up in extra costs when the final product is manufactured and delivered.