Supplier QA- Why is it so difficult for startups??

Having worked for start up organizations, I have observed a certain level of difficulty when it comes to complying with supplier Quality Assurance.

supplier QA typically should follow the following flow:

1. Come up with a complete specification of the product/service to be sourced
2. Scout for vendors/suppliers/sub contractors (V/S/SC)in the market who provide the specified product/service
3. If monopoly supplier/vendor, no questions asked- Go with it
4. Else: Evaluate the prospective V/S/SC against a list of requirements- some requirements may be generic, others may be specific to the product/service (For Example- being compliant to a particular standard)
5. If the V/S/SC passes the evaluation, add the V/S/SC to a master list of Approved Supplier/Vendor
6. Before finalising a purchase/contractual agreement etc. provide in black and white the Quality Requirements to be met by the V/S/SC (Provide a QA certificate for every consignment, provide COC for every batch and so on)and the consequence of quality lapses (return of goods, revoking the agreement and so on)
7. Schedule periodic re-evaluations and re-evaluations based on certain triggers (repeated quality problems- non conforming goods supplied, delay in shipment, wrong product sent etc. )
8. Always select V/S/SC from the approved supplier list

For a start up which does not have an experienced top level management which is particular about QA and has factored in supplier QA at some early stage of product develeopment planning the following is what normally happens:

As with all new products, the early stages of building proof of concept, prototyping and the first few production unit equivalents are built and tested before final production. The early stage product require the same (or near same) components, and these components are ordered in very few numbers at this stage.

At this stage only Step 1 of the above list is executed. The goal at this point is to obtain the components in very small quantities, at the most competitive price (we are talking start up). What happens is that the start up ends up assuring the V/S/SC of bulk purchase once production kicks in and thus try to get a good price.. For custom products, they may approach small time suppliers since their overhead would be the minimum and would drive the price down for the "few" units they need

In the meanwhile, nobody executed step 4/5 - nobody scouted for alternative sources or evaluated them.. So when the "Production units" stage is reached, the start up is stuck with the V/S/SC who provided the early stage supplies...

And at this stage the company is thinking QA/ ISO 9001 certification (at a minimum) to boost their market image (really- they weren't looking for process based functioning- I promise you!!!) and then the problem starts-

ISo 9001 wants you to select the supplier based on his ability to supply the goods your product requires, requires you to control the purchase product, requires you to monitor incoming goods, requires YOu to control the outsourced process.

Having given the supplier a free run in a state of " we cannot exist without you" it now becomes difficult to require the supplier to adhere to YOUR requirements-

1. You ask for material specifications- Supplier says My way or the Highway
2. You ask for QA Ok certificate- Supplier says- My product never failed in all these years how can you insult me!!!
3. You ask for equipment validation to be done - Supplier says Equipment "What???"


If the V/S/SC is a willing candidate to aid your QA effort although he it also start up- I should say you are blessed- this way the supplier gets better as you get better...

And this is the crux of the matter- Explaining to your supplier your QA requirements, explaining the role he plays in the larger scheme of your adherence to quality and his contribution. If you could achieve this, nothing like it..

But how many start ups have the time and means to have such a symbiotic relationship with the supplier???