SUPPLIER PERFORMANCE MANAGEMENT

STRATEGIC OPERATIONS SUPPORT

LEAN
MANUFACTURING

TECHNICAL SUPPORT AND PROGRAM MANAGEMENT

LEADERSHIP
DEVELOPMENT

TALENT MANAGEMENT
ACQUISITION SERVICES

SERVICE MODEL

Supplier Performance Management

measure, analyze and manage your suppliers’ performance

cut costs. alleviate risks.
drive improvement.

Supplier performance management is more than the quest for the perfect scorecard. It is a business process for measuring, analyzing and monitoring supplier performance and suppliers’ business processes and practices in order to develop productive customer-supplier relationships and to reduce costs, mitigate risk, drive continuous improvement and leverage supplier value. While firms can certainly derive “quick hits” from SPM, it yields the most value and impact when viewed as a premeditated, ongoing business process with multi-function participation and ongoing care, feeding and continuous improvement.
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

improve 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
costs.

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

recovery plans

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.

Hercules Partners

Los Angeles +  New York  +  Paris

CONTACT US

LOS ANGELES.
601 South Figueroa Street, Suite 4050
Los Angeles, CA 90017
Phone: 213-330-2623

NEW YORK.
375 Park Avenue, New York, NY 10152, PH
Phone:  212-634-7500

PARIS.
Level 2, Haussmann, 21 Boulevard Haussmann, Paris, France 75009
Phone: 33 1 5603 6604

 

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