Supplier Performance Management
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 Supplier Performance Management Software Solution
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.
- Provides a common system to manage supplier performance across multiple suppliers and sub-suppliers worldwide
- Enables each business unit to independently manage the performance of their suppliers, while simultaneously aggregating data from across business units to provide a comprehensive, top-level view of supplier performance
- Automates resource-intensive processes such as the collection of data from suppliers
- Helps define and monitor supplier KPIs based on quality, cost, service, risk, innovation, CSR, , and other parameters
- Facilitates the creation of supplier scorecards to measure supplier performance, and to track supplier improvements
- Maps suppliers to contracts so that their performance can be effectively evaluated against SLAs and other metrics defined in the contracts
- Strengthens communication and coordination with suppliers through a Web-based interface
- Helps manage supplier chargebacks for non-conforming materials and supplies
- Provides the extensibility to go beyond supplier performance, and be used to managesupplier risks, supplier compliance, supplier audits, supplier quality, and supplier sustainability
The MetricStream system makes it easy to identify risks, enabling us to close out most supplier risks within 30 days.