Manufacturing has changed dramatically during the past several years. Where once original equipment manufacturers made products primarily within their own four walls, now those companies must manage a complex global supply chain. In an effort to support innovation, reach new markets, and reduce costs, many companies are leveraging third parties to outsource not only supplies and components, but also the actual manufacturing and distribution of finished goods.
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Although using contractors and suppliers located around the world has reduced the cost of the finished product, it has also added new levels of risk due to limited visibility into the product’s life cycle. As a result, organizations are looking for ways to create greater transparency into their suppliers’ and contract manufacturers’ operations and quality processes to ensure that products meet safety and quality requirements. As I discussed earlier this year, effective supplier management is a critical component of a company’s overall approach to quality management.
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