Collaborative Supplier Monitoring for Quality Processes

GTI Energy, in collaboration with regional utilities, has established a Quality Audit Program to provide natural gas utility operators with a mechanism to collectively audit their materials supplier’s quality management systems. The program will conduct an independent and unbiased assessment on behalf of participating operators to provide a reliable and standardized approach for monitoring materials suppliers. GTI Energy will audit select suppliers using ISO 9001, industry standards, and company specific requirements.

Identifying threats and mitigating risks starts with the materials manufacturing process. Reducing supply chain risk requires a comprehensive and well-coordinated supplier audit program to ensure that the integrity of the supply chain is controlled, and that the supplier is following policies and procedures required by customers, regulators, and ISO 9001 and industry standards.

Distribution Integrity Management (DIM) regulations are encouraging utility companies to place a new focus on supplier and supply chain quality. The quality of a supplier’s material determines the quality of the final product. Poor quality can result in extra costs for the purchaser, rejects, replacements, and risk of field defects and failures.

Materials supplier evaluation and performance monitoring can help customers and suppliers identify and remove hidden cost drivers in the supply chain and can also motivate suppliers to improve their performance.