The role of measuring supplier performance

Manufacturers – High Technology, Pharmaceutical, Energy, Automotive and Construction industries - spend on average 50%-80% of the total product cost on raw materials and parts procured from multiple suppliers across different parts of the world. Manufacturers with a large or mission-critical supply chain are working on strategies and techniques to gain cost advantages by efficiently managing their suppliers, without sacrificing quality and flexibility.

Supplier performance management can help companies have better visibility into supplier performance and offer benefits to uncover and remove hidden cost drivers from poor quality.

This insight looks at the role that supplier performance plays in any organization. Some of the aspects covered include the following -
• The critical role that KPIs play in measuring supplier performance
• The three step supplier performance management process
• Its integration to the other aspects of the business
• Supplier Scorecard
• Key benefits of Supplier Performance Management

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