Question

4. Discuss the difference between “upstream” and “downstream” claims quality control.

Answer 1

Quality: Definition

1) The characteristics of a product or service that bear on its ability to satisfy stated or implied needs
2) A product or service free of deficiencies.

Controls:

Means of managing/controlling processes

Supply Chain Quality Management (SCQM):

- A systems-based approach ( i.e. all the variables interact to create a quality result -e.g., processes, tools, equipment, or people) for performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers.

- The management of upstream and downstream relationships with suppliers and customers to deliver superior customer value at less cost to the supply chain as a whole.

Upstream collaboration:

- Encompasses working with and collaborating with suppliers. Examples: strategic sourcing or purchasing, supplier selection and development, total cost of ownership, supplier management, supplier scorecards, and supply chain quality management.

Downstream collaboration:

- Customer relationship management.

- Involves both personal interactions with customers and information systems used in enhancing customer relations.