Top 10 Ways to Help Suppliers Do 10% More According to research, a focus on supplier performance can result in 10% bottom-line performance improvement. 1 Yet many entities are dissatisfied with supplier performance as seen by research citing 71% of organizations are ready and willing to switch suppliers. 2 ClientLoyalty has studied this issue. Through discussions with procurement and supply chain executives as well as the suppliers, we’ve derived a short-list of ‘better’ practices that can help you help your suppliers do more….10% more. By using ClientLoyalty’s Supplier Performance Management technology you can empower your suppliers to deliver 10% more. Visit clientloyalty.com for more details. 1. Give Everyone a Voice. Use 360 feedback by understanding the ongoing relationship experience from the procurement team, the lines of business and the supplier team. If you don’t ask, you might not know. 2. Create Sustainable Metrics. Use a small, well-balanced set of metrics tied to SLAs and/or based on challenging yet attainable goals. Permit your team and the supplier to submit data to uncover misalignment. 3. Monitor Supplier Sentiment. Continuously review social and news networks to track positive and negative supplier market reputation. Just looking at the direct relationship can be a risk. 4. Build Empowered Transparency. Share a subset of non-sensitive feedback, measures and sentiment data with the supplier. Allow them to see it online, anytime, so they are empowered to make changes before escalations occur. 5. Stimulate Positive Change. Generate action plans that clearly set tasks designed to change behavior resulting in improved outcomes. Plans can be innovative, improvement or corrective in nature. 6. Motivate by Example. Use benchmarks such as a category benchmark relative to the supplier score as a relevant point of reference to understand the data and prioritize resources. 7. Adapt Continuous Improvement. Use relevant methodologies like Net Promoter System 3 that future-forward organizations leverage to score supplier relationships and drive growth. 8. Make it Easy and Simple. Use technology that is practitioner--friendly with low ramp-up times and quick-to-value user experiences. 9. Create a Data-Driven Culture. Don’t just collect data for data’s sake or use it sparingly. Really make the data on supplier scorecards actionable and available to stimulate desired outcomes. 10. Recognize and Reward. When suppliers and internal personnel positively contribute to the program and work together to accomplish goals, reward the effort with meaningful recognition. 1-Supporting local public services through change: Contract Optimisation, EY, 2016 2--Guide to Customer Centricity: Analytics and Advice for B2B Leaders, Gallup, 2016 3--NPS is a registered trademark, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.

Key Factors to upgrade suppliers

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Page 1: Key Factors to upgrade suppliers

Top 10 Ways to Help Suppliers Do 10% More

According to research, a focus on supplier performance can result in 10% bottom-line performance improvement.1 Yet many entities are dissatisfied with supplier performance as seen by research citing 71% of organizations are ready and willing to switch suppliers.2 ClientLoyalty has studied this issue. Through discussions with procurement and supply chain executives as well as the suppliers, we’ve derived a short-list of ‘better’ practices that can help you help your suppliers do more….10% more. By using ClientLoyalty’s Supplier Performance Management technology you can empower your suppliers to deliver 10% more. Visit clientloyalty.com for more details.

1. Give Everyone a Voice. Use 360 feedback by understanding the ongoing relationship experience from the procurement team, the lines of business and the supplier team. If you don’t ask, you might not know.

2. Create Sustainable Metrics. Use a small, well-balanced set of metrics tied to SLAs and/or based on challenging yet attainable goals. Permit your team and the supplier to submit data to uncover misalignment.

3. Monitor Supplier Sentiment. Continuously review social and news networks to track positive and negative supplier market reputation. Just looking at the direct relationship can be a risk.

4. Build Empowered Transparency. Share a subset of non-sensitive feedback, measures and sentiment data with the supplier. Allow them to see it online, anytime, so they are empowered to make changes before escalations occur.

5. Stimulate Positive Change.

Generate action plans that clearly set tasks designed to change behavior resulting in improved outcomes. Plans can be innovative, improvement or corrective in nature.

6. Motivate by Example. Use benchmarks such as a category benchmark relative to the supplier score as a relevant point of reference to understand the data and prioritize resources.

7. Adapt Continuous Improvement. Use relevant methodologies like Net Promoter System3 that future-forward organizations leverage to score supplier relationships and drive growth.

8. Make it Easy and Simple. Use technology that is practitioner--friendly with low ramp-up times and quick-to-value user experiences.

9. Create a Data-Driven Culture. Don’t just collect data for data’s sake or use it sparingly. Really make the data on supplier scorecards actionable and available to stimulate desired outcomes.

10. Recognize and Reward. When suppliers and internal personnel positively contribute to the program and work together to accomplish goals, reward the effort with meaningful recognition. 1-Supporting local public services through change: Contract Optimisation, EY, 2016 2--Guide to Customer Centricity: Analytics and Advice for B2B Leaders, Gallup, 2016 3--NPS is a registered trademark, and Net Promoter Score and Net Promoter System are service marks, of Bain & Company, Inc., Satmetrix Systems, Inc. and Fred Reichheld.