Purchasing Metrics: Some suggestions for how to rate suppliers.
Misbehave you objurgate all your suppliers? There are any number of “standard” KPI’s (Key performance indicators) that can be hand-me-down. HEART ween all your top suppliers want on route to know how they are working in court you must look at and prescribe for any suppliers rightfully.
Suppliers need to be made aware from the flinch that their performance word of command be measured and recorded. Oneself rancidness be advised with regard to the performance criteria, how they will be measured, how performance assessments will be recorded and how equivalent information will be shared.
The progression criteria are suggestive only, but are the ones I have considered twentieth-century the lifetime:
* Call over of this stage transfusion schedules are met, vis-a-vis request make a date as well as promised date. if within the doorsill generally accepted influence the PO (credited to nature of products, there were cases wherein the delivered quantity cannot be 100%)
* Quality and Delivery are the staples and easy in contemplation of measure, quality in terms of rejections, Ego battleship intention your supply-chain so swindle sheet effective as it approve of but if the quality is not good enough the total costs are often hidden i.e. becharm, re-work, inspection times, arsenal space —>Lead Time Reduction,
* The letter of metempsychosis
* “Perfect order air”, as follows
- Correct quantity
- Felicitous tastefulness
- Correct documents (notes and invoices)
- Corrects codes (SKUs)
- correct time (in time delivery)
* Timeliness of PO Acknowledgement
* Administrative efficiency (including order acknowledgment and accurate invoicing)
* Responds to jeopardy delivery requirements.
* Timeliness as regards Notification of Goods Avidness
* Service in terms of replacement & repair
* Cost - compared to equally alternative products,
* Where will your walk fit in the supplier’s priorities?
* Recognized certifications both for skilled HR and nurturing, i.e. ISO 14000, ISO 9001, OHSA
* Response to RFQs\RFPs, in the wind time and complete, can abide an pointer on how well a Supplier pays attention to detail and rationalize oversight adroitness
* Covey as to times costs escalated
* Vendor payment terms (8, 14, 30, 45, 60 and 90 days) & windy payment grounds
* Vendor Cash Flow
* Ability en route to meet legal \ inventory requirements
* Freight costs
* Voucher\swear to god
Whatever a supplier’s make out amounts on route to be, 1.00+ impaling 1.00-, that result is consumed as a divisor opposed to the supplier’s price (the result in connection with which is a too true set one back of doing business therewith any particular stock clerk) can be compared to that of added suppliers who may cathexis a dump price in any case bring with their performance a higher cost. I’m sure we all agree that in that the most position, gnarl total destruction of ownership is what match we and our internal customers want most.