Supplier Performance Management
measure, analyze and manage your suppliers’ performance
cut costs. alleviate risks.
We support our clients in:
- Diagnosing the root causes of their suppliers’ underperformance and quantifying its direct or indirect impact (on service, costs, cash, etc.)
- (Re-)Defining the supplier performance management system: dashboard and performance coordination methods
- Elaborating and supporting the implementation of action plans, which are prioritized and differentiated according to each supplier segment (progress challenges, accessibility, and possible negotiation levers)
- Targeted amendment of contracting (Key Performance Indicators (KPIs), delivery acceptance T&Cs)
- Adjustment of the supply process, development of suppliers’ skills,
and upgrading of the related Information Technology
- Increased collaboration with suppliers
- Improving reciprocal visibility: exchanging forecasts and plans, supplier Sales and Operations Planning (S&OP)
- Adjusting methods of stating needs: regular provisional schedules, flexibility agreements.
- Increased Supply Chain maturity of important suppliers (including a supplier improvement initiative), where appropriate
identify poor supplier performance
In many sectors, underperforming suppliers and subcontractors are one
of the main factors in poor operational performance in terms of customer
service, management of working capital requirements, and non-quality
When measured, poor supplier performance is generally the result of:
- Unbalanced prior negotiations (cost of procurement versus expected service)
- Insufficient degree of contracting (definition of tracked performance indicators, bonus-malus system, etc.)
- Unsuitable tracking of performance (inadequate measures, lax tracking)
- Insufficient level of collaboration and/or poor-quality supply processes within the company
- Ignorance of real supplier constraints
- Lack of Supply Chain maturity of suppliers
PROTECTING YOUR COMPANY REPUTATION WHILE CUTTING UNNECESSARY SPENDING.
Once we have a strong understanding of your suppliers’ current rate performance, we can establish weekly rate recovery plans across each of the programs. We drive continuous improvement of supplier performance, protecting your company reputation while cutting unnecessary spending. Recovery plans and KPI’s will identify action plans needed to drive rate readiness and improved delivery and quality performance.