A certified supplier is one whose quality data record shows that it does not need to perform routine inspection and test on each lot or batch received.
A preferred and approved supplier produces better than the minimum required. An approved supplier meets minimum requirements. Some organisations use different terms and even different rankings, but usually certified suppliers are the ideal.
Supplier certification provides a model for the low DPM levels (defects per million needed for just-in-time manufacture, drastically decreases buyer inspection costs, and recognises suppliers for partnerships. Certified suppliers receive preference in competitive bidding and achieve industry recognition by their certified status. In the context of supply chain management, Just in Time addresses to an inventory strategy that is used to improve a business's return on investment by a reduction in process and all related costs. This informs the production processes as to when it is necessary to make stock the inventory. When the stock drops to a certain level, new stocks have to be ordered. This helps maintain space in the warehouse and keeps costs down to a reasonable price. Just in time supplier replaces the order at the earliest when the requirement is critical.
The idea of supplier certification implies equally to the service sector. The criterion for supplier certification has been well explained by The American Standard for Quality (ASQ.) This suggests eight criteria for certification .They are as follows:
Example: No ambiguous phrases like "characteristic odor" or "clear of contamination"