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Onsite Seminar

Relationship Management (Supplier and Customer)

Supplier Assessment and Performance Measurement: Ensuring Promised Value


Supply Management experts recognize that an organization cannot perform any better than its suppliers. As a result supplier assessment, selection, performance measurement, and obtaining compliance of all contract provisions, are being recognized as critical processes where significant management and professional competencies are required. These processes, when properly performed, contribute greatly to improving quality, reducing total costs, reducing supply risk, and providing continuous improvements in supplier and contractor performance. This program provides methods and competencies directed at improving these processes within the supply management organization.

Learning Objectives
  • Steps in a proper supplier evaluation
  • Supplier segmentation
  • Developing performance weightings
  • How to use performance results for improvement
  • How to use various rating systems
  • Methods of collection and reporting data
  • How to develop performance indexes
  • Practices and experiences of others
  • Remedies to use when contractors fail to do what was promised
Seminar Outline
  1. How are we doing in supplier assessment & performance measurement?, elements of a good procurement & competitive bidding process, steps in achieving total quality from suppliers, objectives of performance measurement
  2. Best practices in supplier qualification, letting the supplier measure you, developing the qualification process, ABC analysis, risk assessment and segmentation
  3. The preliminary supplier assessment, the supplier site assessment, who participates in supplier qualification, the supplier evaluation forms, qualified supplier list
  4. Key elements of supplier performance measurement, common performance categories, category weighting, deciding which suppliers to measure, the difficulties of measuring supplier performance,
  5. Collecting the data, quantitative vs. qualitative data, basic points to consider in performance measurement, rating systems options, developing performance standards, the basics of performance based service contracts,
  6. Applying supplier performance in total cost of ownership, performance indexing, and supplier provided performance data
  7. Benefits from measuring and analyzing supplier performance, establishing expectations, sharing the information, expectations from the supplier's point of view
  8. Corrective action, when contractors fail to do what was promised, liquidated damages, force majeure/delays, holding supplier recognition events

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