Companies across industries have become highly dependent on their suppliers. As a result, their business performance is now closely intertwined with the performance of their suppliers. A failure to manage and monitor supplier performance can lead to major supply chain disruptions, delivery problems, poor quality, and other issues that damage a company’s credibility, as well as their bottom line. On the other hand, an effective supplier performance management program can help a company spot supplier issues early on, and ensure that they are remediated in a timely manner, thereby reducing business risks and revenue losses.
However, the vastness and complexity of the global supplier network makes it difficult to manage and track supplier performance across all tiers. It isn’t enough to simply develop a few scorecards. Companies have to collect performance data from multiple suppliers, translate it into quantifiable metrics, identify areas of concern, and implement improvement plans. Supplier performance metrics also need to be integrated with data from supplier risk management and quality management to truly understand how well a supplier is performing. Trying to accomplish these objectives using multiple point systems or manual tools and spreadsheets can be inefficient, ineffective, and costly.
MetricStream provides a comprehensive solution to streamline and automate supplier performance management processes across the extended enterprise. Using the solution, companies can configure and distribute supplier performance surveys and self-assessments, manage certifications, define and monitor supplier KPIs, and create and manage supplier scorecards with closed-loop support for performance sustenance / improvement. Companies can also use the solution to manage supplier contracts and SLAs, and to define quality, operational, and financial metrics in the contracts. A common Web-based interface simplifies supplier communication and collaboration.
The solution delivers complete visibility into supplier performance, helping companies proactively identify areas of concern, minimize the Cost of Poor Quality (COPQ), reduce order cycle time,improve supplier productivity and efficiency, and align supplier performance with organizational objectives. Supplier data can be easily rolled up from across business units, enabling stakeholders to track supplier performance at the enterprise level in real time, and to make informed sourcing decisions. The solution also integrates supplier performance metrics with supplier risk management, quality management, and compliance management information, providing a well-rounded profile of each supplier.