Supplier Performance: Ratings, Measurement and Evaluation

The main objective of this course is to empower professionals with

•         In-depth knowledge and understanding regarding ratings, metrics and methods to evaluate supplier performance
•         The required skill and understanding to define objective metrics and measurements to act as indicators of supplier performance
•         The necessary understanding of advanced concepts and techniques to define, track and correct supplier performance
•         The ability to enhance business performance through effective and favourable supplier relationship management
•         The ability to contribute to controlling risks and distractions related to supplier relations and performance
•         The experience and confidence to maintain good supplier relations and performance, ensuring credibility of suppliers, in turn contributing to increase in organisational credibility leading to increased investments
•         The necessary skills and capabilities to check for gaps in processes of supplier performance evaluation so as to identify issues earlier, take corrective action in time and save costs for the organisation, increasing profits in the bargain
•         The ability to present to the organisation a range of suppliers in order of preference as per performance and credibility, thereby ensuring continuity and sustainability of business operations, leading to organisational growth and facilitating career progression

Ways to Improve Supplier Performance

•         Build scorecards around business goals
•         Establish processes to evaluate the performance
•         Communicate information to suppliers and take action
•         Share information internally

Benefits of Supplier Performance Measurement

•         Avoid supply chain risks and disruptions
•         Protect and improve brand reputation
•         Avoid costs and achieve savings
•         Segment and rank vendors
•         Collaborate with suppliers
•         Improve internal processes

Supplier Performance Metrics

•         Quantity ordered vs received
•         Assignment accuracy
•         On-time delivery
•         Ordered price vs invoiced
•         Inspection fails vs total items inspected
•         Returns rate
•         Order fill rate
•         Lead-time variance

Steps to Evaluate Supplier Performance

•         Align performance goals
•         Choose evaluation approach
•         Develop information collection method
•         Design a robust assessment system
•         Roll out the system
•         Provide actionable feedback
•         Showcase results

Qualities Indicative of Supplier Performance

•         Good communication
•         Competency
•         Commitment
•         Cost Control
•         Consistency
•         Sustainability

Approaches in Supplier Performance Evaluation

•         Identification
•         Criteria
•         Quality
•         Solutions
•         Expert insight

Challenges in Supplier Performance Evaluation

•         Lack of uniform metrics
•         Lack of transparency
•         Different business models
•         Lack of cooperation from suppliers
•         Biased/incorrect audits

Techniques for Supplier Performance Management

•         Categorical system
•         Weighted point system
•         Cost-based system
•         Total cost of ownership

FOR WHOM:

Stores Purchasing and Logistics Personnel in the Public and Private Sectors

TRAINING METHODOLOGY

The training methodology combines lectures, discussions, group exercises and illustrations. Participants will gain both theoretical and practical knowledge of the topics. The emphasis is on the practical application of the topics and as a result participant will go back to the workplace with both the ability and the confidence to apply the techniques learned to their duties.