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Supplier Relationship Management
- 1. SRM Supplier Relationship Management by Michelle Lombard
- 4. Segmentation Who are my key suppliers? Segmentation Who
- 5. Define your criteria Who Traditional Supplier Management Tier 1 Tier 2 Tier 3 Supplier Relationship Management Concentrate your resources on a limited number of strategic suppliers Segmentation
- 7. Roles
- 8. R = Responsible A = Accountable C = Consulted I = Informed Roles Role/ Task Supply Chain Engineering Quality Contract A/ R C I Cost A/ R C C Accept Deliveries C I R/ A Deliver Returns C I A/ R Measure On time Deliveries R/ A I C Reduce Costs A R R Implement Process improvements I A R Responsible: person who performs an activity or does the work. Accountable: person who is ultimately accountable and has Yes/No/Veto. Consulted: person that needs to feedback and contribute to the activity. Informed: person that needs to know of the decision or action. Agree on roles and tasks
- 9. Set up the internal governance process. Who
- 10. Performance Management Why a BRM (Business Review Meeting)? Performance Management BRM
- 11. Consistent & Structured The BRM 3. Key Performance Indicators (agreed upon by all the stakeholders) • Focuses on the “critical few” • Obtain alignment internally • Include compliance as well as applicable laws • 2-Way Communication – Gap Assessment 1. Set Agenda 2. Determine the Place 4. Future plans
- 12. Setting the agenda The BRM
- 14. Operational Measures Metric Weight KPI KPI Measurement Define what KPI means and how it will be measured. Cost 30% • Price Competitiveness • Roadmap • Identification of savings i.e. Price roadmap provided annually Delivery and Service 20% • On Time delivery • Delivery accuracy • Lead-time • Communication i.e. Percentage of time deliveries are within expected window (deliveries are 2 days early to 1 day late) Flexibility 10% • Demand modifications • Consignment program i.e. Supplier is able to accommodate changes to forecasts or orders without significant impact or delay or cost Quality 30% • Supplier related yield loss • Product Quality • Response to CAR’s • Capability perfomance i.e. Degree to which capability performance meets requirements Partnership and Technology 10% • Technology roadmap • Technical support i.e. Supplier has sufficient technical resources/ bandwidth to provide complete technical responses in a timely manner Key Performance Indicators
- 16. Title of your presentation How are you communicating Scorecard
- 17. Mini-negotiation The BRM • More than just performance and progress • Agreement on certain points may have cost implications • i.e. Risk mitigation strategies
- 18. Supplier Development Are we done? Supplier Development On Going process
- 19. A springboard to additional value. Supplier Development
- 20. 1) Full transparency between organization and supplier 2) Improved collaboration 3) Streamlined and reduced sourcing activities/ lead times 4) Improved quality, manufacturability, and reliability 5) Increased supplier responsiveness 6) Increased customer satisfaction 7) Increased visibility supply base to all levels of the organization Supply Partner Supplier Development
- 21. Move from Strategy to Action How does it affect me?
- 22. “Companies don’t compete, Supply Chains do” Bob Manzcka Michigan State University