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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 measuring 1200 suppliers [...] 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 The book has been praised by its [...] 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 rather than [...] I’ve discussed previously how supplier performance metrics work best when they are aligned with and support overall corporate goals and strategies and reasons why they can fail. But the challenge remains of how to tell whether you’ve come up with a good metric. There are many ways to look at a metric to judge how effective it [...] Supply management, procurement and quality professionals are increasingly aware that they should be measuring their suppliers’ performance and working with important suppliers on performance improvement. In their enthusiasm for going forward with these initiatives, some people make some errors that can impede or stall progress. Here are a few mistakes people making when trying to justify [...] Many people struggle with getting senior management support for supplier performance management initiatives. And, according to the editor-in-chief of Supply Chain Digest in his July 2nd editorial, many people don’t even know what senior management support means. Most know that you’re supposed to need it or you might not get very far with implementing supply chain [...] In a survey of 223 procurement, supply chain and supplier relationship management by the consultancy, State of Flux, almost two-thirds said that they did not have a definition of Supplier Relatinonship Management (SRM) in their companies. The conclusion of Alan Day, Managing Director of State of Flux, a supply chain consultancy in the UK, was that [...] In a recent poll conducted by Supply Management, more than half of buyers (55%) have experienced problems introducing suppliers to e-procurement systems. But the other 45% did not. What was the difference? How the new technology was communicated to suppliers. While some buyers used carrots and others used sticks, which typically worked if nothing else did, [...] Companies embark on supplier scorecards for many good business reasons. They are concerned about supply risk, supplier quality, supplier responsiveness. They know that they should be measuring, understanding and improving supplier performance and mitigating risks. It’s the right thing to do. But as I’ve mentioned before, companies are often focused on the metrics themselves – the [...] I was recently following a discussion on Elsmar Cove, a forum for quality professionals (free, but registration is required), on the subject of an approved supplier list (ASL). Someone wanted to know whether having an approved supplier list was a “shall” under ISO standards and whether you had to evaluate every single supplier for the ASL. [...] |
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