Agreement between a Supplier and a Customer
In the process of ensuring that every part of ordered goods is within tolerance, the supplier should perform an extra task in inspecting each piece before actual shipment to their clients. These quality costs connected to delivering substandard goods or services to the buyers is often the external failure to the firm. Businesses need profits to run longer, which mainly comes from potential customers (Stevenson, 2015). To maintain and please the company customer, suppliers need to deliver products or services according to the agreement previously made with the customer. In case the supplier is unable to dispatch the product or services as expected by the customer, there is a high probability for customers to switch to other suppliers leading to adverse effects when it comes to quality cost to suppliers. Hence, to gain a competitive advantage, suppliers should avoid the quality cost to the customer by putting extra effort into ensuring the shipment meets customer expectations.
There are real-world examples that require the supplier to ensure products and services shipped to customers are within tolerance before the process. Firstly, an inspection conducted by external inspectors within the factory to ensure the quality of the products. The most common quality inspection service is by external inspectors who come to a given factory and randomly take samples that they use while concluding on the quality of the whole batch (Stevenson, 2015). The external inspectors are the third party who acts as quality control agencies or can be a buyer coming from quality control house. Thus, an inspection conducted by the third party is a process that always occurs immediately after completion of production before shipment of the product to ensure they tolerate customer’s expectations.
Secondly, there are companies referred to as free-market quality control that ensure suppliers meet customer expectations before shipment. These are privately and third party quality assurance organizations or agencies that have the primary role in giving quality control services. Intertek is a significant example of a company that offers quality and safety to businesses through ensuring products and services meet both quality and safety regarding the environment and health system (McClellan, 2016). Hence, the next real-world example is free-market quality control companies like Intertek that help business suppliers to dispatch quality products by checking quality concerning health, safety, and social accountability.
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason may is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Our essay writers are graduates with diplomas, bachelor, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college diploma. When assigning your order, we match the paper subject with the area of specialization of the writer.