SQM Supplier Quality Management System

In today’s competitive global market, customer requirements have grown increasingly diverse, pushing the products and services that companies provide toward high-mix, low-volume production. As this environment evolves, a central plant must do more than control the quality of its own processes—the stability of supplier quality becomes a decisive factor in product failure. Because most suppliers do not yet have fully developed management systems, issues with the quality, cost, and delivery of supplied parts often create friction between the central plant and its suppliers/subcontractors, directly affecting the central plant’s operations and growth. MiDFUN SQM consolidates industry needs into a complete and effective set of supplier-management and coaching tools, building a healthy mode of interaction for both sides so that the central plant and its suppliers can together create the best win-win relationship!

SQM management system architecture for suppliers and the central plant

SQM key tool no. 1

Purchase order and incoming-material management ※ Provides communication on quality-inspection and order-delivery status, establishes process controls over incoming-to-warehouse receiving, acceptance, and material issue for the quality assurance, materials, warehouse, and finance departments, and integrates with ERP information to maximize the benefits of the plant management system. 1. Supplier qualification management and a part-number coding cross-reference table 2. ERP order management integrated with the master data for receiving operations 3. Chart-based analysis of accepted and rejected incoming material  

SQM key tool no. 2

IQC incoming inspection and supplier quality management & analysis ※ Quality is the core value on which an enterprise survives, and supplier quality management and improvement coaching is the most important indicator of SQM’s value. To instill a rigorous shipping attitude in suppliers and ensure stable quality of incoming components, the following capabilities are provided: 1. Establishment of incoming-inspection specifications for supplier parts and materials, with flexible, custom-defined sampling procedures 2. Capability to import and analyze supplier COA reports or IPQC and OQC inspection data 3. Seamless integration of ERP suppliers, materials, and incoming-inspection sheets 4. Supplier quality trend analysis: supplier quality histograms, X-bar & R charts, Ca / Cp / Cpk scatter plots, defect-rate indicator analysis, and more 5. Complete management of variable, attribute, and special check items for IQC incoming inspection 6. Automatic integration and linking of supplier inspection data with the central plant’s SPC system 7. MRB (Material Review Board) meeting management and a counter-signature review procedure  

SQM key tool no. 3

SDM supplier document management ※ SDM (Supplier Document Management) is a management system used to collect supplier documents. Within the system you can flexibly set up document categories and document templates; once a document requirement is created in the system it can be issued to suppliers, who can then upload to the SQP web platform. Through the platform, suppliers can upload documents and respond to special investigations from the central plant. 1. Custom-defined document categories 2. Announcement board 3. Special-event investigations 4. Message management 5. Customer-complaint message management 6. ECN document library  

SQM key tool no. 4

Green product data ※ GPD (Green Product Data): consolidated management of international environmental regulations and the specifications of major customers, letting users easily reference the system database to quickly assess the environmental compliance of each part or material. 1. RoHS regulatory database management 2. Effective management of incoming-material RoHS certification data 3. Periodic incoming inspection 4. Real-time alert capability 5. Practical advanced search and reporting capabilities  

SQM key tool no. 5

Supplier approval, periodic audits, and evaluation ※ For the parts-and-materials approval procedure of suppliers, the system clearly defines a rating system for suppliers across Q (quality), C (cost), D (delivery), S (service), and T (technology), serving as the statistical analysis behind supplier-grade evaluation decisions. This fairly and effectively drives suppliers toward continual improvement and establishes a complete supply-chain management mechanism. 1. Supplier qualification review, with templates for periodic audit items 2. Flexible configuration of periodic rating attributes, e.g., LRR / DOA / CP / CAR… 3. Supplier QDCST evaluation, and a master summary of periodic supplier ratings 4. Annual supplier audit plan scheduling 5. Document management for new-supplier evaluation Through the web platform, the relevant personnel at both the suppliers and the central plant can communicate online about important information such as announcements, quality inspection, customer complaints, ECN, and GPD, and use it to upload supplier COA shipping inspection reports or updates to green documents that are about to expire, and even documents for supplier evaluation and new-product design samples. By using an online platform, the spatial and temporal distance between the two sides is shortened, reducing the back-and-forth emails between the central plant and suppliers. With automated system notifications, this breaks the previously one-directional, non-real-time structure of the supply chain, achieving a restructured supply chain of diverse, real-time interaction on the platform, and raising the competitiveness of the supply chain and the wider supply network.