Seven Keys to Scaling your Supplier Scorecarding Program

A solid supplier scorecarding program can drive big cost savings in the supply chain. Executives know that clear performance metrics are the starting point for supplier management.

scorecarding

Yet many companies find data management and sharing a roadblock. Through our work with customers, Logility has identified the seven key attributes for better scorecard programs.

Segment your scorecard

You can’t use a one-size-fits-all strategy for scoring supplier performance. Performance varies across supplier types. How you respond should match the supplier’s strategic value and your available alternatives. Because it’s impractical to treat every supplier uniquely, organizing them strategically and creating differentiated strategies is more effective.

Set a high bar for data relevance

Limit your KPIs to 10 to 15 and establish supplier relationship management strategies for KPIs ahead of time. Ideally, your scorecard will encompass supplier quality and risk dimensions.

Use a credible analytics platform

Consider using an analyticsI platform to run your scorecarding program. These systems include essential data governance, data cleansing and reporting capabilities.

Add data visualization

Static reports can provide necessary information for busy buyers and sales people, but they often fail to communicate the key dynamics that are impacting performance. For example, displaying On Time In Full rates over time as spend increases, via a trend chart, is more effective for understanding how well a supplier will scale to your needs.

Use a secure collaboration portal

Communicating with suppliers cost-effectively requires a portal with appropriate data security levels. These portals can be enhanced with scheduled reporting and alerts.

Predict supplier behavior

An historical view of supplier performance is good for evaluation but not actionable. A better scorecarding program will use predictive analytics to anticipate changes in risk and performance in the future. What is the probability that a smaller supplier who has recently won more of your business will deliver for a major product launch? Minimizing supplier disruption is central to optimizing your supply chain.

Use mobility to increase adoption

Finally, strong programs move beyond static reporting to make it easy for every stakeholder to retrieve their information. Portals and mobile apps that deliver scorecards with at least one level of drill down to KPIs can enable users to collaborate and respond more quickly and effectively.

Many companies fail to scale their supplier scorecarding initiatives. Often the major hurdle lies with managing data and delivering relevant insight to guide performance feedback. By deploying new technology and best practices, companies can re-invigorate their programs and scale to larger numbers of suppliers.

Daniel Bachar

Written by

Daniel Bachar

Short bio

Daniel Bachar is a Product Marketing Director for Advanced Analytics for Logility. Daniel brings more than 10 years of experience in sales, marketing, supply chain planning, and advanced analytics. He provides a unique blend of business and industry knowledge, leading successful efforts to integrate new technologies into effective supply chain solutions. His experience includes development, design and go-to-market strategy of supply chain and advanced analytics products, helping clients with complex business problems to achieve complete visibility into their supply chain operations. Supply Chain Brief

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