Leadership   Supply Chain   Lean Processes   Negotiations  

  

 

Consider:  Are you satisfied with your supplier measurement system?  A recent Aberdeen Group study found 75% were not! Why?  Most companies lacked knowledge, skills or, most often, time to make improvements; yet the same study showed a 27% improvement in supplier performance resulted when a good measurement system was used. 

Common causes of poor supplier performance:

  1.    Poor business practices throughout the company (often inconsistent or insufficient employee training)

  2.    Long cycle times (leading to shortage and excess inventory)

  3.    Processes prone to errors (process and product design may not be aligned)

  4.    Shortages (prevents predictability and on time deliveries)

  5.    Excess inventory (subject to spoilage, damage, becoming obsolete and high carrying costs)

(Source Aberdeen Group)