[vc_row][vc_column][vc_column_text][vc_row][vc_column][vc_column_text]<\/p>\n
Suppliers are an integral part of a company\u2019s production process, and it is therefore vital that their performance is excellent<\/strong>.<\/span><\/p>\n Monitoring their performance, measuring and sharing results is important for a continuous improvement process<\/strong> and for sharing common goals.<\/p>\n It often happens in a company that information on suppliers is incomplete, not centralized, and not immediately usable (perhaps because it is on different systems), or that it is difficult to compare. Vendor rating <\/strong>is a tool for combining strategic planning and operational control. It can be used reactively or proactively.<\/p>\n Reactively<\/strong>: monitoring and promptly identifying any problems with suppliers, product classes or codes<\/span><\/p>\n Proactively<\/strong>: making suppliers aware of the key process factors for the company<\/span><\/p>\n Common mistakes: <\/strong><\/p>\n To avoid the issues mentioned above, the vendor rating development phases<\/strong> can be identified as follows:<\/p>\n The questions that should be asked are:<\/p>\n The main metrics, which are frequently mapped, are: time, cost, quality, skills and competences.<\/p>\n Secondly, one or more vendor rating models<\/strong> must be developed, if necessary with different metrics and data sources, depending on the class of goods.<\/p>\n Particular attention must be paid to the quality<\/strong> of the data source, which inevitably affects the quality of the vendor rating.<\/p>\n What to ask oneself?<\/p>\n A differentiated approach can be adopted: based on the Kraljic matrix, one can conceive a complete vendor rating process<\/strong> for strategic classes, a partial process<\/strong> for classes with leverage, or, in the case of non-vital classes, choose not to perform the vendor rating.<\/p>\n For hiring, it is recommended to adopt a sharing mode<\/strong>. In addition, it is important to receive feedback<\/strong> from the suppliers themselves.<\/p>\n You should ask yourself the following questions:<\/p>\n The frequency depends on how often the instrument is used. If the instrument is used sporadically it is useless and counterproductive to invest energy in frequent measurements.<\/p>\n The actors to be involved are those impacted by the performance of the supplier pool in the specific class.<\/p>\n It is useful to have a dashboard<\/strong> enabling us to analyse and compare immediately all metrics for monitoring suppliers. The frequency may vary depending on how strategic a class of products is, without excessively impacting operations.<\/p>\n It is necessary to share the results with suppliers<\/strong> in a structured, traceable and clear way (metrics, assigned class of merit, necessary improvement actions).<\/p>\n Thanks to these tools it is possible to construct a supplier hierarchy<\/strong>, based on objective selection and evaluation criteria, and useful for strategic supplier management<\/strong>.<\/p>\n Suppliers can be identified as:<\/p>\n In this way, a company adopts a strategy more focused on the supplier than on the class of goods, which is vital in order to understand whether to invest in such supplier.<\/p>\n So, this is a development strategy<\/strong> to improve performance and identify new business opportunities.<\/p>\n By following this methodology and applying a supplier monitoring system<\/strong> you will move:<\/p>\n Thus obtaining, in conclusion, a set of vital tools and processes for strategic management.[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][vc_btn title=”VENDOR MANAGEMENT WITH IUNGO” align=”center” link=”url:https%3A%2F%2Fwww.iungo.com%2Fen%2Fdigital-procurement%2Fvendor-management%2F|”][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":" [vc_row][vc_column][vc_column_text][vc_row][vc_column][vc_column_text] About supplier monitoring Suppliers are an integral part of a company\u2019s production process, and it is therefore vital that […]<\/p>\n","protected":false},"author":2084,"featured_media":25315,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":"","_members_access_role":[],"_members_access_error":"","_ppma_block_editor_authors":""},"categories":[253],"tags":[274,310],"ppma_author":[316],"class_list":["post-20775","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en","tag-vendor-management","tag-vendor-management-en","author-et_1un90"],"acf":[],"yoast_head":"\nWhy is it important to set up an effective supplier monitoring system in a company?<\/h3>\n
\nThis inevitably leads to knowledge being tied to individuals and not to the company, to a lack of involvement of internal customers, and to subjective decisions.
\nThis makes it impossible to fully manage supply risk.<\/p>\n
\nIts goal is to:<\/p>\n\n
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\u2192 Objectives and metrics<\/u><\/span><\/h4>\n
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\u2192 Targets for suppliers<\/u><\/span><\/h4>\n
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\nThe metrics used must vary according to the supplier\u2019s conduct and cannot be affected by customer conduct, objectives must be shared<\/strong> with suppliers, and measurements must be accurate and clear<\/strong> to suppliers.<\/p>\n\u2192 Performance measurement<\/u><\/span><\/h4>\n
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\u2192 Supplier performance analysis<\/u><\/span><\/h4>\n
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A development strategy<\/strong><\/h3>\n
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