Effective Supplier Management ensures that suppliers that are critical to operations are identified, classified, assessed and appropriate plans are developed to manage risk, performance, and relationships.
Robust Supplier Management ensures the value achieved through effective Category Management and Strategic Sourcing is delivered and ongoing performance is actively managed. To improve and drive consistency in how an organization manages suppliers, there needs to be methodology & processes, tools and training and enablement through user-friendly technology.
With Nitor’s guidance, organizations are beginning to see there is a better way to approach managing suppliers and are investing time and effort to make this change happen.
Framework for segmenting suppliers to ensure resources, time and effort are leveraged to manage key relationships.
Measure supplier performance against agreed requirements/KPl's resulting from the Category Management, Strategic Sourcing and Contract outputs. A supplier performance scorecard is developed to measure and monitor supplier performance and identify deficiencies in performance.
Organizations with joint risk mitigation plans are able to more quickly recover from issues than those without plans - especially for the high risk/high impact areas. While risk can never be eliminated, it can certainly be assessed, mitigated and managed.
In addition to managing performance and risk, effective Supplier Management involves managing relationships. A common mistake is that organizations forget to focus on the "people" aspect of Supplier Management.