Please enable JavaScript.
Coggle requires JavaScript to display documents.
Chapter 9: Supplier Management and development, Measurement and reporting…
Chapter 9: Supplier Management and development
Supplier measurement decisions
what to measure
Cost reduction
quality performance
delivery performance
Uses of measurement data
Types of supplier measurement techniques
weighted - point system
categorical systems
Cost - Based systems
Rationalization and Optimization: creating a Manageable Supply Base
Adventages
Buying from world-class suppliers
Use of full service suppliers
reduction of supply base risk
Lower administrative costs
Lower total product cost
Ability to pursue complex supply management strategies
Possible risks of maintaining fewer suppliers
Supplier dependency
Absence of competition
Supply disruption
Overaggressive supply reduction
Formal Approaches to Supply Base Rationalization
Twenty - eighty rule
Improve or else approach
Compentency staircase approach
Triage approach
Summary of supplier rationalization and optimization
Supplier development: A Strategy for improvement
indentify critical commondities for development
form a cross functional development team
Reach agreement on key projects and joint resource requirements
monitor status of project and modify stratrgiies as appropriate
identify opportunities and probability for improvement
meet with the supplier's top management team
Measurement and reporting frequency
Buyers meet with suppliers annually
Buyers never delay reporting a supplier's poor performance
Daily reports
weekly,monthly, quarterly, and annual reports