Measuring and Monitoring Suppliers' Performance

Introduction

To improve supplier performance, you must first have a system to measure and manage it. This comprehensive and interactive course addresses the detail needed for you to get the best out of your suppliers and drive continuous improvement in your organization. In an age of globalization and digitalization, organizations are confronted with suppliers located across the world, only communicating with each other through technology. The more complex your supply chain is, the more sense it makes to measure and monitor supplier performance against contract requirements regularly and over a period of time. Best practice performance measurements provide the scope for organizations to know that they are getting what they contracted for when working with their suppliers.

Public, private, and third sector organizations are now taking a more proactive approach to understand the tools and techniques required in managing their suppliers successfully. Consequences of poor supplier performance has seen even world-class organizations facing reputational damage through the delivery of poor quality goods or services, leading to increased cost and waste.

Ensuring your organization's supply chain is managed efficiently and effectively enables you to anticipate and deter any possible issues that may arise from suppliers that could potentially disrupt your supply chain process. This course will enable you to take a proactive approach to understand how to manage your suppliers, anticipating common problems that may arise and how to tackle these with world-class tools and techniques with respect to your organization's overall business strategy. Case studies and video presentations will embody this course, providing you with deep level learning and the ability to apply concepts learned within your own organization.

Key benefits:

1. Develop a focused approach to create and implement your own supplier management strategy incorporating world-class benchmarking criteria.
2. Understand the impact of enhanced vendor performance  on the overall profitability of your organization
3. Gain new insights into How integrated procurement  and supply chain thinking can perform the competitiveness of  your supply chains and your business
4. Increase your understanding of costs, contractual risks, and financial performance
5. Provide a continuous supply of goods and services at the  lowest cost and minimum contractual risk by managing the  performance and effectiveness of suppliers

Objectives

By attending this course you will

• Develop your own integrated supplier management strategy using the latest tools and techniques.
• Adopt a strategic approach to managing your suppliers and understand how world-class organizations manage and measure their suppliers' performance, including the challenges they face
• Critically evaluate your current supplier management process and identify areas of improvement
• Segment suppliers to develop a clear understanding of which suppliers need to be measured and managed
• Identify and develop appropriate performance indicators and use technology to measure your suppliers' performance
• Develop strategies to reinforce positive working behaviors and prevent poor supplier performance and contract management
• Evaluate your supplier management process
• Analyze the supply chain process to your  category products/services
• Develop meaningful performance indications for analyzing your supplier’s performance
• Develop action plans for improving supplier performance in terms  of cost compressed time, inventory, and  forecasting
• Appreciate how competitive advantage can be  achieved through an  integrated  procurement and supply chain management approach
• Review the latest  thinking on supply chain planning and execution of the  integrated concept
• Appreciate  the approaches that can be  applied to  integrating  procurement inventory, logistics, and warehousing in a  supplier context

Training Methodology

This is an interactive course. There will be open question and answer sessions, regular group exercises and activities, videos, case studies, and presentations on best practices. Participants will have the opportunity to share with the facilitator and other participants on what works well and not so well for them, as well as work on issues from their own organizations. The online course is conducted online using MS-Teams/ClickMeeting.

Who Should Attend?

Procurement, supply chain, logistics, and materials managers and directors who wish to broaden and update their skills and knowledge. Procurement and supply chain personnel developing relations and suppliers for a long term and strategic co-operation. Those who need chain decisions upon their suppliers and their own company’s.

• Business owners who wish to gain a deeper understanding of measuring and managing suppliers
• Procurement professionals responsible for supplier management and supplier performance measurement
• Senior managers who work closely with suppliers
• Staff involved in developing specifications and sourcing suppliers, to gain a clearer understanding of performance management and measurement
• Legal staff responsible for drafting contracts and contract management post-award

Course Outline

This intensive five days course focuses on measuring and monitoring supplier performances.  This is a vital element in relationship management and success. The development of the key measurement criteria needs to be evaluated in the context of particular contracts. Delegates will develop supplier strategies using supply chain modeling and case study approaches. You will take into account the strategic implications for key products and services. You will build a critical awareness of the scope of supplier performance requirements and show a systems understanding of the extent and nature of the partnership agreement. You will have the opportunity to develop a model for improving supplier performance. The course structure is designed to build a comprehensive approach and understanding of the key considerations for the supplier performance.

Day 1:

Focus on the building blocks to gain an understanding of the key activities for leading-edge processes setting standards and measuring success.

• Defining procurement  and SCM
• World –Class  procurement and SCM
• Diagnosing process capability
• Developing a procurement  and SCM  strategy
• Forecasting  and planning
• Consideration  for logistics and distribution
• Supplier partnering

Day 2:

Good vendor performance essentials for competitiveness. This cannot be left to chance and must be developed from knowledge of your own business requirements. The transfer of expectations and measures must include standards and methods for the supplier to perform competitively

• The value chain model
• Lead times
• Inventory decisions
• Category management
• Becoming World –Class
• Developing strategies
• Aligning  procurement  business management

Day 3:

Your supplier performance needs to be measured and evaluate in different strategy areas.  You need to establish their capability to perform. You also need to understand operational costs and how suppliers set and manage processes.

• Strategic  sourcing
• How  to suppliers set prices
• Understanding Costs
• Cost analysis tools and costs models
• Exploring  price and cost
• Contracting

Day 4:

This session will bring together what you have learned from the previous sessions.  The focus will be on the use of competency frameworks and their applications in managing and measuring suppliers

• Manage  resources
• Value engineering
• Benchmarking
• Getting  the supplier to perform
• Developing  you own  strategy roadmap
• Developing  a negotiation strategy

Day 5: Practical Cases