Smaller companies often do not believe that they can do much about evaluating and managing supplier performance. The oft-repeated phrase is, “We can’t because we’re small.” However, I’ve found the reverse is true in many cases: We can because we’re small. Smaller firms have an ability to be agile and move quickly, unimpeded by [...]
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One of the guiding principles in continuous improvement methodologies such as lean enterprise and total quality management is employee involvement: those who do the work know it best and will be able to make improvements. In other words, management is not close enough to the work to understand them enought to improve work processes. Employee involvement in [...] Over on Spend Matters, Jason Busch just wrote two articles, Calculating the Supplier Performance Management ROI Equation Part 1 and Part 2. These articles, which are based largely on my wiki paper, Improve Supplier Performance: Iasta Supplier Performance Management Wiki Paper, address the issue of the ROI for supplier performance management (SPM), a seemingly illusive issue for many [...] Recently I was asked about how many suppliers are typically monitored and measured, on average, using a supplier performance management (SPM) system or solution and whether there is a best practice. I have never come across a best practice in terms of numbers of suppliers to measure. I know of one large company that was [...] Subscribers to the Value Chain Group site may now download Chapter 1 of Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results. This download includes: Table of Contents Preface Acknowledgements About the Author Chapter One — Introduction, including why the book was written and the business case for supplier performance [...] Recently a supplier quality manager asked me about a dilemma he was having with the way his manufacturing facility was measuring in-process supplier quality. If they found defects in supplier parts during the manufacturing process, each defective item was tallied as part of the total. That is, each defective part counted against the total quality performance [...] Just as you might go beyond words and try to ready a person’s body language to understand what they mean, the same approach can apply to a customer firm on a supplier site visit. While a quality audit has its rules and rigors, there’s nothing like old-fashioned intuition to uncover what’s really going on. As [...] 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 [...] 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 [...] 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 [...] |
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