How can I measure how good my suppliers are at confirming orders and delivering on time?
Measuring supplier performance … there’s a hardcore challenge. There’s a lot of grumbling going on about how bad our suppliers are, but I’m pretty sure this is just a feeling, and that it’s not supported by facts. In spite of this, I don’t have any kind of tool for following up on their performance properly, which means I can neither confirm nor disprove the rumours.
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In order to follow up and evaluate a purchasing process, it is important to establish objective measurements that are fully transparent so both parties have access to the same data and can have a discussion based on facts. For operative purchase processes, for example, it is important to measure when an order is sent, when it is confirmed and when the transport departs. It is likewise important to be able to identify any changes in items, quantities, prices and the delivery date. If all these parameters are measured in a manner agreed by both parties, it is easy to trace trends and non-conformances, and to come up with improvement proposals.
The vChain Globl Purchase solution is integrated with the customer’s ERP and sends orders to the supplier, either directly to the supplier’s ERP or by email. All times are registered in Purchase – when the order is sent, for example, or when it is confirmed. The system also registers changes to items, quantities, prices and the delivery date. In this way, both customer and supplier have a shared data basis to refer to.
Automate your purchasing process. Pick up on non-conformances and visualise the accuracy of each supplier. Why spend time and money tracking down errors? You can now assure quality directly – on the basis of razor-sharp data.Read more