Tuesday 12 August 2014

Techniques to Improve Suppliers Performance

Authored by Fahad Amjad

Supplier performance is very much essential for the progress of any organization to stand among the best in the rest. Here are few practices that can be helpful for the improvement of suppliers performance:

Identify their wrong work: The first and most important thing is that employees should identify wrong task of their suppliers, most of the time suppliers do not understand and unaware what the organizations exactly wants. Every company and employee should owes it to themselves to identify the issue until it can impact on a bigger level to their organization.

Collect Data through various Appliance: On a frequent basis, the company should collect information to calculate current values on an agreed upon set of metrics, thresholds and targets. Various methods that can be used to gather this data include supplier assessment surveys, information from ERP systems etc.

View and analyze Summation information: Once data is collected, it should be aggregated to report on Performance plan. While spreadsheets and other tools
can be used for analysis, supplier performance management systems significantly improve the ability to analyze the information and increase efficiency.

Identify gaps, prioritize and communicate: Scorecards, trend reports and alerts help identify gaps between target and performance for every supplier. The purchasing organization should use this information to review the impact of performance gaps on their business in order to prioritize them, which in the end increased communication efficiently.

Execution of continuous Tracking: Supplier performance management is not a one time process. Performance should be tracked on an ongoing basis to help ensure that previously identified gaps were re mediated and also to keep the focus on continuous bench marking and improvement.