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Supplier Management Supply Base Strategies, Performance Measurement, Supplier Relationship Management, Supplier Integration, Supplier Development

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  #1  
Old 08-22-2006, 11:38 AM
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Default Supplier Measurement - Self Assessment

The intensive effort involved in Supplier Performance Measurement is a major hurdle for some procurement professionals. As a result they sometimes give up on the leading practice purely because they do not have the resourses / time to do this.

It seems that quite a few companies are now instructing suppliers to measure themselves and then report back to the buying company on this.

Is this a workable solution? What if the supplier is dishonest about their performance?
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Last edited by bernievn : 08-22-2006 at 11:50 AM.
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  #2  
Old 08-31-2006, 06:41 AM
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Default Re: Supplier Measurement - Self Assessment

Assuming the correct performance criteria, as well as the measurement and reporting requirements was agreed on during the negotiation, this can be a good practice.

The buying organisation must reserve the right to audit the reports, and do so from time to time.
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Old 08-31-2006, 11:28 AM
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Default Re: Supplier Measurement - Self Assessment

You're right. Supplier Self assessment and audit rights need to be agreed upon during the negotiation and not as an afterthought.

Since the self measurement and audit requirements will have an effort / cost implication at the supplier, this cannot be left till afterwards as the supplier might see this as an additional concession.
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Old 09-01-2006, 11:45 PM
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Default Re: Supplier Measurement - Self Assessment

With regards David's accurate disclosure, I would also like to see the development of a meaningful set of KPI's (Key Perfomance Indices) which could form the premise of a country wide benchmarking process. This could also set the scene for managing expectations (of both buyers and auditors) and also recognise the 'exceptions to the rule' by way of sub-sector comparisons. Standardisation is the key to self assessment otherwise it wil not be possible to compare 'apples with apples'. However, whilst I maintain a bias towards the construction industry, I beliver that the 'principles of assessment' remain transferable and can be applied to any sector under the guise of BBBEE.
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Old 09-02-2006, 07:24 AM
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Default Re: Supplier Measurement - Self Assessment

The Supply Chain Council (www.supply-chain.org) is developing a "standard" for supply chain modelling and it include an extensive list of KPIs, for suppliers as well as the extended supply chain. There are still many gaps, and it shows the complexity of creating universal standards.

Supply chain, including supplier, measurement and reporting is an interesting and complicated subject.

I think most supply chain measurement conversations happen long before it is relevant. You first have to understand the specific supply chain before you can debate what (and how) to measure. Also you have to know how to manage the supply chain based on these measurements.

Remember, you can't measure performance into a supply chain. You can measure that the planned performance is being achieved.
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Old 09-03-2006, 03:39 PM
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Default Re: Supplier Measurement - Self Assessment

Many thanks for the web link. We do not agree entirely with your holistic assessment of 'the premature complications and challenges', after all where there is a will there is always a credible solution. You will also note our bias towards the 'construction industry' where an explicit knowledge of the relevant supply chain mechanisms (and the sector specific outputs) exists, needless to say, we look forward to monitoring progress on said subject(s).
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Old 09-04-2006, 08:27 AM
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Default Re: Supplier Measurement - Self Assessment

Our company also has a supplier management module which utilises questionairres to accredit suppliers. This has been working really well although you still depend alot on overall supplier integrity. However we have always recommended that our clients use SEDA ( http://www.seda.org.za/ ).
They will assist both buyers and suppliers in procuring better and more accurate services.
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Old 09-04-2006, 11:03 AM
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Default Re: Supplier Measurement - Self Assessment

Looking at this conversation, it appear that we use the term "Supplier Measurement" to mean more than one thing, and also to want to apply the data during different stages in the lifecycle of the relationship.

It appear as if there is a need for a "reference database" with supplier performance data to be used during the supplier selection phase, as well as for benchmarking. Then there is the ongoing measurement and reporting on agreed KPIs during the relationship.

Any comments?
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Old 09-04-2006, 10:08 PM
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Default Re: Supplier Measurement - Self Assessment

SEDA obviously has the requisite 'angle' on the appropriate supplier certification critieria, however we are keen on the timely development of a 'reference database' which could be used as the de facto tool in which to establish the validity (of supplier self assessment) on a even premise. Thanks for the link, will review with great interest and of course, spread the word!
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Old 01-31-2007, 11:29 AM
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Default Re: Supplier Measurement - Self Assessment

Urbanis, you can also go to Intenda(PTY)Ltd.s webpage. Should interest you as well, they have a great Supplier Management solution amongst others.

Last edited by bernievn : 02-19-2007 at 05:16 PM.
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