Tag Archives: Supply Management

Is Reducing the Supply Base the Right Move?

Many firms are aware that they are dealing with too many suppliers. So they figure that the first thing they need to do is reduce the number of suppliers. The benefits of a smaller supply base lie in the area …

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Is What's Good for Volvo Good for Its Suppliers?

In an interview in the IFPSM ezine, Bernt Ejbyfeldt, senior vice president of purchasing at Volvo Car Corporation, was asked whether Volvo planned to provide financial assistance to help its struggling suppliers. Ejbyfeldt said that Volvo wasn’t in a …

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Making sourcing strategic through spend visibility

Attracted by the potentially high cost savings and the direct impact on the corporation’s bottom line, some firms plunge directly into strategic sourcing activities without first fully understanding their spend. While they will probably achieve cost reductions, these firms are …

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Giant performance failure in a peanut supplier

The failures at Peanut Corporation of America are tragedy in every way. This supplier failed to meet both regulatory and customer requirements. Its customers failed either to uncover or report the failures, and people died as a result. Now a …

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Knowing the score

I was recently interviewed by Nick Zubko, Purchasing Editor at IndustryWeek magazine, for an article on supplier scorecards. The resulting article, “Who’s Keeping Score?”, summarizes the actions needed to ensure supplier scorecards that are meaningful and actionable and …

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Scorecard Statistics — do you get what you measure?

As the saying goes, statistics can be made to prove anything – even the truth.

Or, everything is vague to a degree you do not realize till you have tried to make it precise (Bertrand Russell).

The customer sends the …

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Borrowing Supplier Scorecard Metrics

In the benchmarking world, one of the axioms is to “steal shamelessly” from other companies, meaning: don’t be afraid to borrow ideas from others (not steal proprietary information).  When it comes to supplier performance metrics, one of the first questions …

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Supplier Scorecard Metrics — Easy vs. Meaningful

In my last post, I listed 11 reasons why supplier scorecards fail.

I’d like to write about the first reason – measuring what is easily measured instead of measuring what is meaningful or important. This assumes that you already …

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11 Reasons Why Supplier Scorecards Fail

Scorecards have become the Holy Grail of supplier performance management.  I find that most companies have some kind of supplier scorecards. And if not, they are in the process of developing them or want to develop them. Expectations for results …

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The game of risk: keeping supplier risk at bay

What steps can you take to avoid supply risk? Be methodical and be proactive. Segment the supply base for risk. And look beyond just the obvious categories. First, look at all types of suppliers who have risk potential, depending on …

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