They tell me you can’t manage what you can’t measure! So what about implementing a supplier scorecard for supplier performance measurement? In this article we discuss some key measurements based on best practice.
Let's make sure we are on the same page as it relates to supplier performance measurement. It can be defined as the business process that includes the methods and systems used to collect and provide information in order to measure, rate, or rank suppliers on a continuous basis. Many companies use the term “scorecard” to describe the report that conveys performance information to suppliers.
Supplier Scorecards can assist in using facts to rank the supplier’s relative performance within the supply base and tracking improvement in supplier’s quality over time. Scorecards also provide a data point into any future business negotiations – objective ammunition to use when it’s time for price increases. Following are the key operational metrics that leading manufacturers track in their supplier scorecard:
Look out for our next article on implementing supplier scorecards
http://www.arigo.com/pdf/Valuable%20Metrics%20for%20Successful%20Supplier%20Management_63011_with%20images.pdf
http://www.metricstream.com/insights/bestPractices_supqltymgmt.htm#