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Why is Closing the Loop on Quality & Compliance Key to Promote Transparency?

compliance digitization quality transparency Feb 27, 2019

Closing the Loop on Quality and Compliance Management means linking quality and compliance processes with performance data from different sources, and collecting audit, production, quality and traceability information all in one place. The goal is knowing your supply chain, improving quality, catching problems earlier in the process, and understanding and correcting the root cause.

The key benefits of closing the loop on quality and compliance are:
- All information is in one place, accessible in real-time by different stakeholders
- Corporate administration and CSR policies, codes of practice, industry standards, processes, guidelines are all embedded in the system
- Production processes are transparent, lean and more effective
- Key stakeholder can take informed decisions and react faster when problems occur
- All players are empowered, promoting a collaborative approach
- Real-time traceability to know product history

Under Armour started their journey to quality and compliance a few years back, but they were only able to really close the loop after starting to work with Pivot88 in 2017.
With the ultimate goal of building quality instead of inspecting quality, in just over a year they managed to improve quality and trust with their suppliers, with all stakeholders having visibility over processes and objectives. In just over a year, they achieved 163% improvement in transparency, and 22% improvement in on time delivery performance.

Matthew Littlefield, President & Principal Analyst at LNS Research, states: “It continues to be a common belief that the sooner you identify and correct a quality non-conformance, the less of a negative impact it will have.”

What are you waiting for?

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