Developing Effective Product Specifications And Quality Requirements For Outsourced Suppliers

Abstract. In recent years, increasing numbers of manufacturers are using outsourced manufacturing to supplement or replace their internal manufacturing of components, assemblies or finished products. In most instances, this is done after a thorough make versus buy analysis to ensure the company remains competitive with regard to its competitors in today’s cost sensitive environment. Once the make versus buy analysis has been completed and the decision to outsource has been made, it often falls upon the Supply Manager to take on an expanded role in making sure that quality is controlled at the outsourced supplier’s factory and acceptable product fills the company’s product pipeline. While quality has not traditionally been the responsibility of the Supply Manager, how the quality at outsourced suppliers is managed can greatly affect the company’s bottom line, its operational efficiencies and the Supply Manager’s credibility. Therefore, outsourcing as a supply strategy requires Supply Managers to take an active role in making sure product specifications and quality requirements are communicated clearly and completely. Outsourcing’s Growth. Outsourcing has been a part of the Supply Management landscape since the early 1980’s with the first outsourcing of electronic components. The 80’s, 90’s an