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Here’s a Classic: Why Supplier Scorecards Fail

I’ve spent more brain cells than I care to think about on supplier evaluation and supplier scorecards. I’ve made a number of posts about the subject on this blog, which I will list in a future post.  And I’ve been a guest blogger on the subject. As part of its Best of Spend Matters series at [...]

NUMMI Suppliers Lose Their Customer: Can Lean Help Them Survive the Loss?

Looks like it’s really all over for NUMMI, the Toyota/GM joint auto manufacturing venture in Fremont, CA. Last summer, I wrote a post about the strong possibility of Toyota’s closing the plant (NUMMI: Things Are Looking Gloomy). The plant was losing money. Located in a high-wage area, even potential UAW concessions didn’t seem like enough to allow the [...]

Top Ten Reasons to Implement Supplier Performance Management

At the end of the year, and especially at the end of a decade, many top ten lists are popping up. So I’m joining in this list-making with the top ten reasons why firms should implement supplier performance management (SPM).

Find out how well suppliers are really performing
Improve supplier performance such as quality, responsiveness, customer satisfaction and delivery
Reduce [...]

If Your Supplier’s Work Environment Is Unsafe, What Do You Do?

Die casting is manufacturing at its most basic and dirty level. Companies that use casting suppliers must allow additional lead time for procuring the castings, as they are typically a long lead-time item. And die casters are known for being generally at the low end of the manufacturing efficiency and innovation scale. According to a North American Die [...]

Six Sigma Black Belts Aren’t All Created Equal

Thousands of people have gone through Six Sigma training and many call themselves Six Sigma Black Belts. While they may have gone through black belt training and possess the technical know-how, many may not adequately fulfill the role and create successful changes and improvements in an organization. They have the book learning but not the street smarts. Expertise [...]

Smart Supply Chain Move or The Turning of the Screws on Machinists?

Boeing recently announced that it was planning to replicate all 787 parts built in the Puget Sound area in a new facilities being built in North Charleston, South Carolina. According to a recent article in the Seattle Times,  Boeing machinists are seeing this as the first step toward moving all parts out of Boeing’s Puget Sound plants. The [...]

Too Many KPIs: Rightsizing the Supplier Scorecard

You’ve heard of supplier rationalization and “rightsizing” the supply base. What about too many KPIs on the supplier scorecard? I’ve mentioned the problem of measuring too many KPIs in previous posts. In 11 Reasons Why Supplier Scorecards Fail, I list measuring too many KPIs as a reason for failure. In Supplier Scorecard Metrics: Easy vs Meaningful, I [...]

Supplier Auditing Michelin-Guide Style

In a recent article in the New Yorker, author John Colapinto describes his adventures with a stealth Michelin Guide restaurant inspector in New York City as she visited some restaurants to see if they met the stringent guidelines to merit the coveted Michelin stars. The Michelin hotel and restaurant guide has enjoyed enormous success in France and many other [...]