Raising Supplier Relationship Management in emerging countries

A Procurement insightIselle Dimas Ekoh

Foreword

Relationship awareness

DELIVERABLES

PO to delivery percentage

32

4138

54

6256 58 56 58

0

10

20

30

40

50

60

70

Janv Fev Mar Avr Mai Juin Juillet Aout Sept

PR to PO KPI sept 2011

8

12

89 9

13

78

3

0 0 00

2

4

6

8

10

12

14

Janv Fev Mar Avr Mai Juin Juillet Aout Sept Oct Nov Dec

DELIVERY FAIL ANALYSISTimely delivery performance

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

10 C s of supplier performance measurement

Competency Capacity Commitment Control Cash Cost consistency Culture Clean Communications

Best Practices

Suppliers performance rate

 

Supplier 1Supplier

2 Supplier 3Supplier

4Supplier 5 Supplier 6 Supplier 7

Timely delivery 37 19 10 9 13 7 1

Delays 7 8 2 1 10 4 12

Number of Pos 44 27 12 10 23 11 13

Punctuality percentage 84 70 83 90 57 64 8

Ratings

Category rating form Delivery performance (quantities) Delivery performance ( on time) Price ( performance over time) Quality and compliance to specifications Invoicing and Financial performance Service from representative and after-sales team Good and accurate documentation Problem solving when difficulties occur Emergency backup if needed Simple rating formQuality/ Delivery/ After-sales service/ PriceScore and Target chart

Balanced scorecard and PDCA cycle

Measurable Factors Factor Weight Vendor #1 Vendor #2

Throughput/Cycle time      

Yield Rate (consistency)      

Footprint      

Machine cost      

Decreasing cost of ownership      

Increasing overall equipment efficiency      

System flexibility      

Changeover time      

Tool reliability      

Overall system quality      

Process development/monitoring capability      

Reduced operator skill requirements      

Faster training and ramp capability      

Software functionality/common platform      

User programmability      

Related applications and technology      

Installed base      

Number of applications supported      

Vendor technical leadership      

Application engineering and pilot production support      

Package design for automation support      

Ongoing process improvement support/ Ongoing product development efforts     

Overall vendor responsiveness      

Total      

Weighted measurements Walker Manufacturing Factors Weights Quality 35% Delivery 35%

Price 20% Support 10% AT&T Factors Weights Quality/Reliability 8% Delivery 25% Business

issues 15% Qualification 10% Quality management 12% Vendor co-operation 20%

S C Johnson's Wax Factors Weights Quality 35% Delivery 35% Price 20% Support 10%

GTE Factors Weights Delivery 25% Pricing 10% Customer service 25% Product quality 25%

Cummins engine Factors Weights Quality 25% Delivery 25% Price 25% Subjective 25%

Factors Weights Delivery 30% Quality 30% Value 20% Partnering 20%

Auditing

Traditional audit Process audit Value for money audit Audit trail

Be Excellent: A culture of discipline, precision, thoroughness and rigour is not a business principle. It’s a Greatness principle!