We often hear the word “SCAR” in supply chain management. The Scar is one of the most important things in supply chain management and is associated with the progress and development of any manufacturing company. It is a report that deals with the quality inspection and measures taken to resolve any quality issue that arises.
What is Scar?
SCAR stands for Supplier corrective action report. It is a formal request sent to the suppliers identifying an error or problem in their supply chain, and they are asked to submit a formal response on how they will rectify the identified issue. Since some problems of suppliers can jeopardize the whole supply chain, it is crucial that the issues are identified, and corrective action is taken. Therefore, SCAR takes it to the next level by asking the suppliers to present a formal solution to the problem.
Applying an optimal SCAR quality process ensures smoother manufacturing procedures. First, proper communication between the purchasing department and the supplier is conducted about the requirements shared along with terms and conditions. After this, the purchasing department places a P.O. Next comes the inspection process; during the inspection, if the inspector finds out that all the goods are fine in terms of quality, then these goods are transported to the stores. However, if the inspector is unsure of the quality, these goods are sent to the NC area. From there, the goods are delivered back to the supplier. Once the goods are back, the organization is supposed to use all the best possible approaches to discover the root cause and take all the preventive measures to prevent the problem from occurring again. The organization even highlights this difference in the “quality documentation”.
Why is SCAR important in Supply Chain Management?
SCAR is one of the most reasonable methods, especially in the field of procurement. As mentioned earlier, SCAR is usually issued when the products or supplies received are not up to the standard, and they cause problems for the buyer in terms of quality or time loss. SCAR reduces non-conformance and helps improve the suppliers’ performance. By issuing SCAR, the buyer helps the supplier to understand the requirements and quality standards he’s looking up to. With the help of the Supplier Corrective Action Report, the supplier is able to understand the client’s expectations, and they strive hard to avoid such issues in future. Not only this, but it even creates a solid and healthy relationship between the supplier and the buyer. Besides this, it helps increase the efficiency and saves the buyers time as well as money because the buyer won’t have to begin all over again. Searching for a new supplier and then negotiating the high prices before cracking a deal requires a lot of time and energy. Hence, the buyer will be more comfortable working with the same supplier by issuing a SCAR rather than cancelling the purchase order.
So here is all that you need to know about the Supplier Corrective Action Report. This report is very beneficial and vital in supply chain management.