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Chapter 9 :Supplier Management and Development - Coggle Diagram
Chapter 9 :Supplier Management
and Development
Supplier performance measurement
Supplier segmentation
Category spend amounts
Switching costs
Supply base risk levels
Quantitative variables
Delivery performance
Quality performance
Cost reduction
Qualitative Service Factors
Problem resolution ability
Technical ability
Ongoing progress reporting
Corrective action response
Measurement and Reporting
Frequency
Reporting frequency to supplier
Never delay reporting supplier’s poor
performance
Reporting frequency to buyer
Uses of Measurement Data
Designing a Measurement System
Supplier development
Supply Disruption
Overaggressive Supplier Reduction
Absence of Competition
Supplier Dependency
Overcoming barriers to supplier
development
Contingency Management Tools
Third-Party Intermediaries
Lessons Learned from Development
Scenario Analysis
Rationalization and optimization
Rationalization: Analysis of how many and which suppliers
to maintain
Optimization: Analysis to ensure that only most capable
suppliers are kept
Managing supply base risk
Lower Total Product Cost
Ability to Pursue Complex Supply
Management Strategies
Lower Administrative Costs
Formalized communication processes
Fewer problem-related interactions with
suppliers
Greater information sharing
Joint problem-solving
Possible Risks of Maintaining
Fewer Suppliers
Supplier dependency
Absence of competition
Supply disruption
Overaggressive supply reduction
Managing sustainability in the supply base
Buyer-Specific Barriers
Buyer-Supplier Interface Barriers
Barrier
Solution
Overcoming Barriers to
Supplier Development
Supplier-Specific Barriers