Supplier Risk Classification Necessary to Implement Lean Manufacturing.

supplier risk classification


In this article, you will learn what is Supplier Risk Classification and its benefits according to lean manufacturing and six sigma techniques.

Supplier Risk Classification Definition

A document or procedure to handle and determine the most critical requirements necessary to facilitate the information required to buyers to select and buy from trusted and reliable supplier’s products with QA approval of components at affordable prices.

These benefits include, but are not limited to components, packaging materials, supplies, etc. based on their specific manufacturing needs and demand at affordable prices.

How to Calculate the Supplier Risk:

The supplier risk is defined and calculated as:

𝑅𝑖𝑠𝑘 = probability of failure event × business impact or severity of the event.

The Business Impact Shall be Estimated Based on the Following (10) Ten Attributes and Characteristics:

    1. High-volume suppliers.
    2. Suppliers of critical components; and
    3. Non-substitutable suppliers
    4. Cost – Reduce product costs, ensure timely, reliable delivery and quality
    5. Responsiveness – Respond to changes in demand (volume, mix, and location) quickly and at a reasonable cost.
    6. Security – Ensure that the product flow through the supply chain is protected from disruption due to external threats. Ensure product integrity and consistency.
    7. Sustainability – operate supply chain to ensure minimal and controlled resource impact now and in the future. Implement and maintain a “Cradle-to-Cradle” perspective. The “Cradle-to-Cradle” perspective seeks to design products such that they can be endlessly recycled so that waste is reduced to zero, natural resources are not depleted and the environment is not polluted. This is in contrast with the “Cradle-to-Grave” approach.
    8. Resilience – Develop a supply chain risk management system to react quickly and cost-effectively to supply chain risks and disruptions.
    9. Innovation – develop and provide new products meeting customer needs. Provide new ways of producing, delivering, and distributing products.
    10. Recognition and reputation

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CIQA is a quality and regulatory consultant with 25 years of experience developing products and managing projects in the medical device supply chain, and pharmaceutical industries. Rest assured of the safety or being in the right hands.

Our Lean Manufacturing team could provide you a broad range of professional expertise implementing these techniques and tools.


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Quality procedures templates

Three (3) Options to Create Document Control Management DCM Procedures:

Bronze Option. You Can Create Your Own Quality Procedures, using a Template.

You can download samples of the Document Control Management DCM procedure templates in .pdf format. 

To see the complete list of the most popular quality procedures templates, click here.

In addition, you can request a quotation to buy online a full SOP template document in MS Word format that is completely editable, ready to fill, and adapt to your specific needs.

Silver Option. We Can Bring You Formal Training about Supplier Risk Classification.

This option is recommended if you want to learn more about how to build robust quality system procedures. One of our expert(s) can provide online step-by-step training to your team (unlimited assistance) on how to build reliable SOPs using our template(s). Also, you can improve your corporate quality procedures and policies by incorporating our template(s) and tools.  It includes a fully editable template from the Bronze option, plus training, exams, and a training certificate for each assistant.  Request a quote now.

Gold Option. We Can Create Customized Quality Procedures.

One of our expert(s) will create and prepare your customized SOPs with the inputs and specific information of your company. It includes a fully editable template from the Bronze option, plus online support in document creation, implementation, and training. Request a quote online.

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REFERENCES: Supplier Risk Classification.




Picture of Ramon Cayuela, MS, BS, Chemical Engineering

Ramon Cayuela, MS, BS, Chemical Engineering

CIQA President and CEO.
I've been working in validation engineering since 1992 with many multinational pharmaceutical companies. I love sharing my passion and knowledge with others. If you have any questions about anything (or just have general questions). I will be more than happy to assist you. You can count on the BEST customer service on CIQA. I go to great lengths to make sure my clients are 100% satisfied with their purchases and check emails/messages consistently throughout the day. You can rest assured that everything being sold here is as-described or your money back. I look forward to working with you!