Sometimes you need to engage one supplier to get access to another. But then, whose performance do you measure? A question that has come up several times recently is: how do you measure the performance of the products from value-added resellers (VARs)? Most companies are set up to measure the performance of their direct [...]
When setting up a supplier performance management (SPM) process, procurement and supplier managers have often asked me which suppliers they should evaluate. Should they focus primarily on the suppliers with whom they spend the most money? Should they try to measure a large portion of their supply base? There is no quick answer other [...]
Value Chain Group has just authored a streaming online video, also known as a cloudDVD, entitled: Supplier Evaluation and Performance Management. Users can purchase this cloudDVD by visiting the Value Chain Group CloudDVD Store. The store’s catalog is provided by Retrieve Technologies, which has developed a cloud-based training system that leverages modern technology.
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 [...]
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 [...]