5 Reasons You Need a Supplier Performance Program

In procurement, not all suppliers are created equal, and neither are supplier performance programs. At SupplyHive, we have curated one of the best out there, and while we wouldn’t usually toot our own horn, would you want to partner with a company that didn’t believe in its purpose so strongly? Would you trust them if they didn’t believe in themselves? Neither would we.?

However, we don’t ask you to blindly believe in us. Explore who we are and see if our reasons why you need a supplier performance program resonate with you. We have designed a pinpoint technology that is the best-in-class way to identify and measure what is important to you.

Wherever you are on the procurement curve, there are many reasons to embrace a supplier performance program, and it goes far beyond cost savings. Here are five of them.

Build trust: It doesn’t matter what industry your company is in--pharmaceutical, food and beverage manufacturing, or financial services--it’s not unusual for as much as 70 percent of your overall annual costs to be spent with your suppliers and vendors. ?

When you use technology to get to know your suppliers better, it helps to build trust and encourages transparency while at the same time nurturing relationships and giving honest, helpful feedback.

Identify your all-star performers: Just as it’s easier to keep current customers than to find new ones, the same is true with your suppliers. When you take the time to learn as much about them as you can, to vet them and know if you are working with an all-star performer, you can stay one step ahead, put your arms around them, do everything you can to retain them, and to keep them as a happy, solid part of your supplier team.

Improve performance: Supplier performance programs not only identify your rock stars, but they also identify supplier performance gaps, giving you the chance to give them the tools they need, to provide feedback and advice, and encourage them to make needed improvements and become an even better part of your supplier network.

These programs also tell you who isn’t a good fit, even if they were when you started working with them.

Identifying performance gaps allows you to strengthen your supply chain and, at the same time, offer a supplier the necessary insight, expertise, and mentoring. This can help improve their processes and lead to greater efficiency, better alignment, or increased scalability.

Increase customer satisfaction and improve the bottom line: Recognizing suppliers who you collaborate and work with well often leads to better communication, faster correction of any problems that arise, producing a better product or service, and, ultimately, meeting customer demand.

The outcome of those improvements is a measurable increase in customer satisfaction that ultimately improves the bottom line through faster growth (from referrals and positive reviews) and a lower cost of operations.

Customizable: Utilizing a proven format that is extremely easy, quick, and intuitive for your team to use can provide qualitative and quantitative data across each of your key performance indicators to demonstrate ROI.

When utilizing the unique process offered by SupplyHive, it can also be customized to provide exactly what you need. For instance, one of our clients came to us knowing exactly what they wanted to measure, why they wanted to measure it, and how they planned to measure it.

We provided them the technology to do it precisely as they wished. Before they came to us, they used Exel spreadsheets, which are great for many things but not for digital procurement platforms. We ensured that our technology did not change their process but wrapped around it.

We meet you where you are

Whether your company has experience or is just starting its supplier performance program, we have the knowledge and expertise to take the complex, distill it down, meet you where you are, and get you on your way to where you want to go.

Let’s get to know each other better. We can be contacted here.