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Your procurement team needs to manage supplier performance. What tools will help you get the job done?

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Managing supplier performance is a crucial task for any procurement team. You want to ensure that your suppliers deliver quality, timely, and cost-effective products and services that meet your expectations and objectives. But how do you monitor, measure, and improve supplier performance effectively? What tools can help you get the job done? In this article, we will explore some of the most useful tools for supplier performance management and how to use them.

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Deepak Thiru CPSS?

ISM-CPSS? Certified |End-to-End Sourcing & Procurement Operations | Vendor Management |
Vishal Singh

Senior Procurement Officer in Commtel Networks

1 Supplier scorecards

A supplier scorecard is a tool that tracks and evaluates the performance of a supplier based on predefined criteria and metrics. It can be used to compare suppliers, identify strengths and weaknesses, and communicate feedback and expectations. Supplier scorecards can cover various aspects, such as quality, delivery, service, innovation, compliance, and sustainability. To use them effectively, you should align the scorecard metrics with your strategic objectives and prioritize relevant, measurable, and achievable indicators for each metric. Additionally, it's important to collect data from multiple sources such as invoices, contracts, surveys, audits, and reports. You should also assign weights and ratings to each indicator and metric before aggregating and analyzing the data to generate an overall score for each supplier. Lastly, share the scorecard results with suppliers and stakeholders to recognize good performance or address issues that require improvement actions.

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Vishal Singh

Senior Procurement Officer in Commtel Networks
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1. Supplier Relationship Management (SRM) 2. Key Performance Indicators (KPIs) Dashboard 3. eSourcing and eProcurement Platforms to streamline the procurement process, making it easier to manage supplier relationships. 4. Quality Management Software to monitor and ensure that suppliers meet specified quality standards. 5. Supplier Auditing Software 6. Supply Chain Visibility Platforms 7. Collaborative Communication Tools 8. Contract Management Software 9. Data Analytics and Business Intelligence Tools 10. Compliance Monitoring Tools 11. Mobile Applications to Allow procurement teams to access performance data and communicate with suppliers on the go.

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Prashant Pawar

COLUMBIA PETROCHEM PVT LTD
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Supplier performance reviewed with Quality, Service, Price. Previous rejections, Services rendered in time, initiative in critical situation, Timely deliveries, Approach towards new product development, Audit at their end, emergency supplies behavior

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2 Supplier surveys

A supplier survey is a tool that collects feedback from your suppliers on various aspects of your relationship and collaboration. It can help you assess satisfaction, loyalty, expectations, and perceptions in order to improve communication, trust, and alignment. Moreover, it can identify opportunities for innovation, cost reduction, and risk mitigation. To use supplier surveys effectively, you should define the purpose and scope of the survey and design clear and concise questions. Additionally, select an appropriate method and frequency for conducting the survey such as online or email. Invite and encourage your suppliers to participate while assuring them of confidentiality and anonymity. After analyzing and summarizing the responses, share and discuss the findings with your suppliers and stakeholders. Finally, use the survey findings to address feedback, enhance your relationship, and implement improvement actions.

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3 Supplier dashboards

A supplier dashboard is an effective tool for displaying and visualizing the key performance indicators (KPIs) of your suppliers. This type of dashboard can help you manage and monitor supplier performance in real time, track their progress and trends, and spot issues quickly. To use it effectively, you should select the most relevant KPIs based on your objectives, choose an appropriate tool or platform for creating and updating the dashboard, organize the data in a clear, concise, and attractive way, refresh the data regularly to ensure accuracy and reliability, review and interpret the dashboard data to identify patterns and anomalies, share and explain the data with suppliers and stakeholders, and use the data to make informed decisions.

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Deepak Thiru CPSS?

ISM-CPSS? Certified |End-to-End Sourcing & Procurement Operations | Vendor Management |
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leveraging technology for creating supplier dashboards provides a beautiful picture about the potential of suppliers .It helps to capture, store and calculate performance metrics. This provides transparency in your operations and finance functions and a single source of truth for everyone involved (sometimes including suppliers) to operate from.

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4 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Your procurement team needs to manage supplier performance. What tools will help you get the job done?

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1 Supplier scorecards

2 Supplier surveys

3 Supplier dashboards

4 Here’s what else to consider

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