Manufacturing scenario: Supplier quality optimization

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Available with: Microsoft 365 Copilot Scenario level:
Buy

KPIs impacted

Supply chain performance

Scrap rate

Value benefit

Reduce costs

Using Copilot for supplier quality optimization


1. Current supplier assessment

Quality head of an aerospace manufacturer wants to proactively optimize their supplier base to drive rigor in high quality sourcing of raw materials, services, prices and faster lead times while assessing the pertinent risks.

Microsoft Copilot icon

Business Chat2

Benefit: Access supplier data from various sources to examine factors such as purchase orders, inspection reports, supplier performance ratings, and industry benchmarks to determine high, low, and underperforming suppliers

2. Risk Analysis

Evaluate suppliers based on the selection criteria such as product quality, processes adherence, business objectives met, certifications compliance etc., to identify potential risks.

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Copilot in Excel

Benefit: Highlight key insights from supplier performance records and create summary of high-risk and potential pitfalls

3. Proactive collaboration

Share quality data and insights with suppliers on the identified issue causes such as material variations, response times etc., for the supplier to review and respond.

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Copilot in Power BI

Benefit: Provide suppliers with transparent access to quality data related to their components or materials, enabling them to understand how their performance impacts the final product.

4. Rationalize supply base

Determine who are the most valuable suppliers to streamline spend, capabilities, and overall performance.

Microsoft Copilot icon

Business Chat2

Benefit: Synthesize data from all analyses, communications and documents to pursue with the valuable supplier list

5. Align on a transition plan

Create a transition plan including timelines, budget, agreement, and cross-functional coordination for communication and leadership approval.

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Copilot in Word

Benefit: Autogenerate a detailed record of the transition plan, actions, and next steps

6. Ongoing monitoring

Review suppliers’ internal processes and amend contracts to improve transparency, negotiate deals, build trust, and optimize supply base.

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Copilot in Outlook

Benefit: Capture and share supplier document / updates across relevant organizations for ongoing collaboration and quality improvement

1Access Copilot at copilot.microsoft.com or the Microsoft Copilot mobile app and set toggle to “Web”.

2Access Business Chat at copilot.microsoft.com or the Microsoft Copilot mobile app and set toggle to “Web”.

3Copilot agents allow Microsoft 365 Copilot to access your organization-specific apps. In the past, this would have required an API call to get data from a system of record. The content in this example scenario is for demonstration purposes only. You should evaluate how Copilot aligns with your organization’s business processes, regulatory requirements, and responsible AI principles.

The content in this example scenario is for demonstration purposes only. You should evaluate how Copilot aligns with your organization’s business processes, regulatory requirements, and responsible AI principles.