Skip links

4 Pillars of Supply Chain Pain #2 of 4: Supplier Performance Management

4 Pillars of Supply Chain Pain #2 of 4: Supplier Performance Management

I have always made it a practice to be consistent in how I described something. For instance, a Tender is a process where I know the item, the item or service can be very accurately described, it can be sourced from multiple suppliers and the main criteria to consider is the price. Now what happens when the awarded supplier does not provide the goods or services as described in the tender document. Well, you will need to work on addressing the situation and try and fix what you can. Most times you are successful. Other times you are in trouble.

The next time you go out for bid for the same thing and the same terrible supplier bids and is low again. Do you have to award? If your award criteria are weak then the simple answer would be yes.

Using an effective supplier evaluation program would help your organization filter less than desirable performers and excluded them from winning for a period of time. You would need to insert as part of your award criteria a score for previous performance and you now have a way of reducing the impact that bad performers have on your organization.

Why don’t organizations do supplier evaluations? The quick answer is it takes time which most don’t have and the current process is cumbersome. Which is why QCsolver has had a supplier performance module for you to use.