Supplier Certification - Definition & Meaning
What is Supplier Certification?
The supplier certification acts as a part of a larger strategy of the supplier quality management. It essentially is a process by which the organization can manage its relationship with its suppliers to coordinate as a single entity for creating value for all stakeholders. The supplier certification specifies a minimum requirement expected from the supplier to be eligible for working. This process aims at a continuous improvement.
The process of certification holds utmost importance due to the following reasons:
• It enables the process of identifying suppliers which can meet the requirements of the company
• It enables to gather a fair estimate of the potential of the suppliers, thus enabling judicious and safe decisions in terms of investing and money
• Using supplier certification also enables avoidance of some processes such as inspection
• It regulates and forms consistent methods of managing the suppliers
• It enables the development of capabilities of the supplier
• It establishes more open and stronger relationships
• It facilitates enhanced communication and better sharing of information
• It helps the organization serve its customers better
• It helps achieve corporate improvement objectives through collaboration
Though the factors to be considered while certification vary widely across the industry and the companies, some of the most important ones are given below:
• Quality
• Delivery, cost, and technology
• Environmental standards
• Financial status
• Communication capabilities
• Business practices/processes
There are majorly three types of certification:
• ISO 9000- The quality certification program by the International Standards Organization which focuses on the documentation part as well
• Industry equivalents like ISO 14000 which is used for the automotive industry
• Self-designed certifications by the company
Hence, this concludes the definition of Supplier Certification along with its overview.
This article has been researched & authored by the Business Concepts Team. It has been reviewed & published by the MBA Skool Team. The content on MBA Skool has been created for educational & academic purpose only.
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