29. If you use cost as a KPI,you might want to know:• Are they offering the lowest cost?• Have they given us reduced shipping costs?• Do we have the best payment terms?• What process improvements are they offering?• Are we getting bulk discounts on packaging?
30. If you use delivery as a KPI,you might want to know:• Do their products arrive on time?• What is the lead time?• Do they adhere to lead times requested?• Do they have shortages when they arrive with their product?• Do they adhere to shipping requirements?
31. If you use service as a KPI,you might want to know:•Are they friendly to work with?•Do they provide excellent technical support?•Do they resolve discrepancies quickly?•Do they respond to emergencies effectively?•Do you know your main point of contact?
32. If you use quality as a KPI,you might want to know:• Do they frequently have product defects?• Do they exceed specifications?• Do they have nonconformances?• Do they act on nonconformances?• Do they conform to quality standards?
33. How to capturethis information?
34. Supplier SurveysMay seem easy but there are accuracy issues with this approach and it relies on suppliers providing the information
35. System Metrics Some of this data (cost, deliverytimes, service expectations, defects) may already exist in your ERP, Financial or HR software systems
36. Performance Management Software The most efficient system, and it canleverage your existing system metrics
38. Impact based on type Minor (near miss) Major (shut down line) Critical (safety/high cost)
39. Cost of poor quality Internal cost of issueOvertime, late delivery fines Charge backs to supplier
40. Responsiveness ContainmentTime to respond to issue
41. Effectiveness of Corrective Action Risk assessmentLikelihood vs. consequences of this happening again
42. How to UsePerformance Info?
43. Supplier Management Software Intelex Supplier Management System •Corporate wide data rollup •100% web based •Supplier portal Evaluation Methods •Supplier surveys •ERP integrations •Supplier NCR & CAPA Utilizing Supplier Performance Info •Supplier scorecards •Supplier dashboards and portal
44. Thank You Fraser Dickie Intelex Technologies Inc.Visit www.intelex.com for a free trial