March 21, 2017

KPIs and Insights

If supplier management is important to you please consider attending ClientLoyalty’s upcoming webinar on April 5 at 11am Central Time.

How to Build Measurable and Sustainable Supplier KPIs
This webinar will share practices to use when designing  key performance indicators (KPIs) for suppliers that are going to be measurable and sustainable.  The webinar will answer the following questions:  How do I design KPIs that create accountability with my supplier?  How many KPIs should I have for my supplier?  What types of KPIs should I have with my supplier?  How do I establish goals for my KPIs?  When and how often do I measure KPIs?  Who is responsible for KPIs?  How do I best collect KPI data?    What do I do with KPI data once I have the results?  KPIs are important to effective supplier performance management and building a positive supplier relationship.  Ensuring KPIs are set up for success will bring about a culture of empowerment and accountability in the supplier relationship.

Click here to register for this free webinar:
https://join.onstreammedia.com/register/clientloyalty/vvfhqz0

In addition, if your team needs creative insights to manage strategic, visible and costly suppliers, consider our half-day interactive supplier management workshop.

Supplier Relationship Management Workshop
Let our team share our expertise and experiences in supplier relationship management with your team.  This workshop covers core processes for supplier managers to focus their time and attention including change management, supplier on-boarding, project management, risk management and performance management.  This half day session is interactive with exercises for each topic so participants can fully engage in the content and learn from others.

For more information on this workshop, email us at info@clientloyalty.com

Thank you,

The ClientLoyalty Team

March 9, 2017

What’s The Right Supplier Management Measurement Mix?

As a supplier performance management technology company we are often asked the question ‘What’s the right supplier management measurement mix?’  Organizations have access to data and to data collection and reporting tools. However, garbage in is garbage out when there is a flawed measurement model.

First, understand that more is not better.  The ability to ask 25, 50 or 100 questions exists but response rates plummet and data analysis becomes too cumbersome as managers tend to use only 5% of the data they collect for true analysis and improvement purposes.

Second, data doesn’t have to come from a ‘system of record’ or be ‘operational’ to be a key performance indicator.  It is perfectly alright to ask a reliable, trusted group of people their observation on a supplier’s delivery performance even if there is not detailed delivery records to report against each period.  A ‘roughly reasonable’ process to identify leading as opposed to lagging business intelligence can be gleaned in this manner.

Third, collecting a lot of information but from a narrow subset of performance is not a true indicator of supplier relationship health.  For example, collecting 20 cost measures is great but is likely missing elements such as risk, innovation, productivity and quality that are also really important to a complete supplier score.

Given these three factors above, the optimal supplier management measurement mix begins to unfold.  The best way to explain how we suggest it be done is to consider a matrix comprised of type of metric, the audience providing the metric and the cadence in which the metric is gathered.  We’ll provide details on the components of the matrix and conclude our message with the matrix itself.

We suggest the following, based on discussions with hundreds of organizations that tend to reveal what is a better practice to having balanced metrics with optimal data being collected (not too little or too much) and from the audiences that matter.

KPIs

These are the key performance indicators (KPIs) you want to track against goals and will trend over time to ultimately judge supplier performance and adherence to SLAs.  They can be survey-based or system-based but they are quantifiable.  We suggest the KPI’s be categorized within three or more of the following nine business drivers:  revenue, cost, quality, cycle-time, productivity, risk, satisfaction, innovation, and safety.  Sometimes a few KPIs in each of the nine makes sense, sometimes a few in three or four of the nine make sense.  However, using the nine categories helps ensure a broader and more balanced view of KPIs.

Audience:  KPI data collection tends to be a narrow audience of middle managers that are accountable both at the supplier and the buyer to monitor these key metrics.  Even if the data collection is fully automated a select group of managers must monitor the reasonableness of incoming data and review outputs being reported so they can escalate issues and summarize results to executives.

Cadence:  Most organizations will monitor KPIs on a monthly or quarterly basis.  Doing this any shorter is burdensome and doing this any longer may be too lagging to be corrective or responsive.  Quarterly tends to be the popular cadence but organizations can have a mix of monthly and quarterly.

Feedback

Feedback is vital to a buyer/supplier relationship.  Unlike KPIs feedback is less structured and there doesn’t need to be a goal comparison.  Feedback is about given the supplier team and the buyer team a voice in the relationship.  Feedback tends to be more leading vs. KPIs that tend to be more lagging. Thus a good feedback system can be an early indicator of future performance problems that may reveal themselves in future KPIs.  Feedback should also be simple and concise to maximize response rates and data analysis.  We suggest using Net Promoter System (NPS) as it is a proven predictor of relationship health.

Audience:  Feedback is the broadest audience.  Both supplier and buyer personnel can submit feedback about the relationship.  People from accounting to operations to support functions can submit feedback. Levels from the C-suite to the staff can submit feedback.  The goal is a broad, open voice of transparent communication that serves as the pulse of the relationship.

Cadence:  Early on and for troubled relationships we suggest this be monthly.  As it is a single question it should be easy to do.  If the trend in the first several months of a relationship is positive perhaps the cadence moves to quarterly.  For low priority suppliers it may just have an annual cadence.  But, for strategic, visible and costly suppliers where it is important to have a pulse on what is happening, the monthly cadence is suggested.

Risk

Supplier risk is most often managed by a governance or compliance team and tends to focus on certain types of risk like financial or IT security.  However, relationship risk is really important to also review during a multi-year agreement.  Reviewing relationship risk constructs like people, process, culture, and externalities in addition to some of the more classic financial and IT security risk is advised.  For example, a supplier using a suboptimal process to manager the services it provides to the buyer puts the services at risk.

Audience

Typically, there is one person who is responsible for the broader relationship risk assessment.  This may be the business unit manager or the supplier manager whose role is to look at the supplier relationship as a whole.  In addition, requesting the supplier do a self-assessment of the risks mentioned above is worthwhile to understand their views on these critical relationship success factors.

Cadence:  This is done once per year.  If an event occurs that prompts a heightened level of risk perhaps it is done sooner than later.

Reputation

As a way to get ongoing information from third party sources another component to the ultimate supplier management measurement mix is to have a way to review reputation.  Reputation is data from news, social and third party accounts that can give the buyer the sentiment on the supplier outside of its relationship with the supplier.   For example, a Twitter feed that talks about the supplier violating a regulation would be negative sentiment and is important to know as the buyer.

Audience

This data is not gathered from the buyer or supplier.  It should be an automated feed from online news and social media that help the supplier manager understand the overall sentiment (positive, negative, neutral) on the supplier.  This can also highlight any major events (ex. merger or acquisition).

Cadence:  It is ongoing.  If done appropriately it becomes something that is viewed as needed because news and social media are real-time.  Being able to review this information as needed is important.

Blue Sky Strategy

Based on the above, we can sum it up in the below matrix.  It can be thought of as your Blue Sky Strategy, meaning it is a preferred way of ensuring the optimal mix of data, audience and cadence.

Data Type Audience Cadence
KPIs Select few Quarterly
Feedback Many Monthly
Risk One Annually
Reputation External Feeds Ongoing

 

We hope this helps in preparing your supplier management measurement mix.  Let us know if you have questions or want to talk further.  We can be reached at info@clientloyalty.com

March 2, 2017

How Do You Organize and Optimize Supplier Relationships Across the Enterprise?

Most organizations rely on a multitude of suppliers to assist it in the daily operations.  Supplier managers can benefit from a thoughtful categorization of suppliers to evaluate and benchmark suppliers.  If you’re building out a vendor management operation and have not yet thought about the best way to organize your suppliers here is an approach to consider

In most organizations, the typical categorization falls into five core supplier markets.  These are as follows:

  1. Finance and Administration
  2. Human Resources
  3. Information Technology
  4. Sales and Marketing
  5. Supply Chain Operations

 

Next, you will want to think about the sub-markets that serve within each of these core supplier markets.  Below are a few examples within each.

Finance and Administration

  • Accounting
  • Capital Planning
  • Credit and Collections
  • General and Administrative
  • Legal
  • Tax Compliance
  • Travel Management
  • Treasury Cash Management

 

Human Resources

  • Benefits Administration
  • Learning and Development
  • HR Laws and Compliance
  • Process Payroll
  • Recruiting and Staffing
  • Talent Management

 

Information Technology

  • Hardware
  • IT Support
  • Networking
  • Security
  • Software
  • Telephony

 

Sales & Marketing / CRM

  • Client Success
  • Client Support
  • Digital Marketing
  • Direct Marketing
  • Field Sales
  • Inside Sales

 

Supply Chain / Operations

  • Inventory Management
  • Logistics
  • Manufacturing
  • Procurement
  • Product Development
  • Sourcing
  • Warehousing and Fulfillment

 

Once the above market classification scheme is created you can then begin to assign suppliers to one or more of the core markets and sub-markets.  For example, a supplier that is used for automating direct marketing messages to prospective clients may be under both Information Technology- Software and Sales&Marketing-Direct Marketing.  You can also assign it to only one category based on the team most directly responsible for management of the supplier.

The benefit of a market-based approach to organizing suppliers is that the groups will better allow for comparisons within them.  So if I am reviewing my IT hardware vendors I can see their information as a group but compare the group to individual vendors in the group to easily call out the leading and lagging suppliers.

Once you’ve organized your suppliers in their logical supplier markets you’ll want to think about the appropriate process and performance models for your vendor management function.  First let’s discuss process.

  • Document Management – A process whereby vendor managers can tag documents into logical classifications for easy reference (ex. meeting notes, security certificates, NDAs); you’ll also want a workflow to happen when there are date-sensitive documents to prevent issues of non-compliance.
  • Contract Management – A process whereby vendor managers tag elements in the contract to monitor for compliance during the lifecycle of the contract.  Examples may include tags for background checks or certificates of insurance or security attestations.  Like documents, you’ll want to initiate workflows when contracts are up for renewal and you’ll want to audit for contract elements that are in and out of compliance.
  • Contact Management- A process whereby vendor managers can assign roles to specific individuals within their organization and the supplier organization to easily locate the right people when needed.  Keep in mind a job title may not reflect the role a person has in a supplier relationship.
  • Spend Management – A process whereby vendor managers view actual to budget spend and break it down by cost center while comparing it against total cost center spend to identify whether a specific supplier is an outlier on spend management.

The above processes can be tedious so attempt to leverage technology to automate the tactical details.

Finally, a vendor management operation will want to have a sound data model for evaluating supplier performance.  We suggest the following, based upon reviews of hundreds of organizations supplier scorecards.

  • Performance data  – This is operational data that you can compare actual performance vs. a goal on a monthly or quarterly basis.  The most common categories here would be cost, innovation, quality, and delivery.  In the delivery category you may be measuring percent of on-time deliveries each month and comparing those to a minimum level of acceptable performance.
  • Experience data- This is softer, relationship data that is more of a leading indicator of future operational performance that tends to be lagging data.
  • Reputation data – This is marketplace sentiment from new and social media. It can help keep you current on what others are saying about the supplier in the market.
  • Risk data – This is data that scores the supplier on various elements of risk such as IT risk, financial risk, process risk etc.

Ensuring you have a good data model that is complete but flexible to incorporate the unique elements of each supplier market is important.  The above data model can do that.

Ultimately organizing suppliers across an enterprise is your first step to managing suppliers so you can get more out of them.  Evolving to rigor in the process and performance management will make your vendor management operation a strategic vs. tactical process and one that can return 10% or more in hard dollar value savings from suppliers while also returning intangible value such as increased supplier collaboration, innovation and flexibility.

For more information on how we can help you with your supplier management needs, contact us at info@clientloyalty.com

About Us: ClientLoyalty is a supplier performance management software company. We go beyond traditional scorecards to drive more value from supplier relationships. ClientLoyalty centralizes and shares critical performance data while automating and simplifying vendor processes to transform a reactive, tactical exercise into a persistent, strategic process.  Learn more by visiting www.clientloyalty.com

 

February 24, 2017

Help with Supplier KPIs? Assistance with Quantifying Supplier Impact? Learn how with these webinars.

If you manage strategic suppliers consider attending these free webinars to generate creative insights to improve your supplier management acumen and generate more value from suppliers.

March 8, 2017, 11am Central Time:

Quantifying the Financial Impact of Improved Supplier Performance Management

Supplier Performance Management (SPM) is a critical process to mitigate risk, ensure quality, control costs, and sustain positive, collaborative relationships with suppliers. This webinar will share ways to quantify in dollars, the benefits to your entity over a three-year period if it makes upgrades to its current supplier management process.  Additionally, the webinar will provide insights into building the business case for improving your supplier management process.  Finally, specific tools will be reviewed and made available to assist you in quantifying the benefits of SPM and building your SPM business case.

Register at https://join.onstreammedia.com/register/clientloyalty/gxxpdwm

April 5, 2017, 11am Central Time:

How to Build Measurable and Sustainable Supplier KPIs

This webinar will share practices to use when designing  key performance indicators (KPIs) for suppliers that are going to be measurable and sustainable.  The webinar will answer the following questions:  How do I design KPIs that create accountability with my supplier?  How many KPIs should I have for my supplier?  What types of KPIs should I have with my supplier?  How do I establish goals for my KPIs?  When and how often do I measure KPIs?  Who is responsible for KPIs?  How do I best collect KPI data?    What do I do with KPI data once I have the results?  KPIs are important to effective supplier performance management and building a positive supplier relationship.  Ensuring KPIs are set up for success will bring about a culture of empowerment and accountability in the supplier relationship.

Register at https://join.onstreammedia.com/register/clientloyalty/vvfhqz0

*note the above webinar is a repeat of our February webinar and is being brought back due to popular demand*

 

February 1, 2017

Webinar: Quantifying the Financial Impact of Improved Supplier Performance Management

Please consider attending our free webinar on March 8 at 11am central/ Noon eastern.

Supplier Performance Management (SPM) is a critical process to mitigate risk, ensure quality, control costs, and sustain positive, collaborative relationships with suppliers. This webinar will share ways to quantify in dollars, the benefits to your entity over a three-year period if it makes upgrades to its current supplier management process.  Additionally, the webinar will provide insights into building the business case for improving your supplier management process.  Finally, specific tools will be reviewed and made available to assist you in quantifying the benefits of SPM and building your SPM business case.

To register please click: https://join.onstreammedia.com/register/clientloyalty/gxxpdwm

We hope to see you there!

The ClientLoyalty Team

January 22, 2017

Quantify the Real Value of Better Supplier Management

Supplier performance management has emerged as a priority in many organizations to mitigate risk, drive innovation, improve quality and simply get more out of suppliers.  However, many organizations looking to improve this process struggle to quantify the monetary value as well as intangibles resulting from focused supplier performance management.

As a result, ClientLoyalty has launched a free tool that will calculate the quantified benefits of supplier performance management.  The benefits are presented over a 3-year period and break down into goods/services, productivity and revenue monetary benefits.  Further, intangibles such as risk, quality and capabilities are scored.

The tool takes less than 5 minutes to do and contains 16 questions.  Immediate results are reported online upon submitting responses so you can quickly glean insight into the total impact that supplier performance management may bring to bear on your organization.

To access this tool please go to https://www.clientloyalty.com/benefits/.

Additionally, if you need material to build a better business case for supplier performance management there is a detailed document found at
https://www.clientloyalty.com/resource/.

January 19, 2017

What are common supplier scorecard pitfalls?

We’ve studied quite a few scorecards.  Most are created with the best of intentions but many are wrought with challenges.  So let’s use this forum to discuss the most common supplier pitfalls –and how to avoid them.

Pitfall:

Scorecards work great for a few suppliers but will not scale to a larger number of suppliers.

Pitfall avoidance:

Build supplier scorecards that have as much consistency in their format, calculations, metrics, and collection cadence as possible.  This will minimize major effort associated with customizing scorecards for each supplier.

Pitfall:

Scorecards seem actionable but really turn out not to be.

Pitfall avoidance:

Create metrics that pass the SMART test.  So make sure a metric is Specific, Measurable, Agreed Upon, Realistic and Time-Based.

Pitfall:

Scorecards that have a lot of metrics but turn out not to be complete.

Pitfall avoidance:

Make sure the metrics are well-balanced.  A good balance would be a measure or two in several of these categories: cost, quality, time, productivity, satisfaction, risk, and innovation.

Pitfall:

We can’t get that data from our systems very well so we don’t measure it at all.

Pitfall avoidance:

If you cannot get a key metric from a reliable feeder system, use a performance assessment that asks a trusted individual to rate the performance attribute as a roughly reasonable way of tracking the metric.

Pitfall:

There is too much manual work in the scorecard process so it is super limited in scope.

Pitfall avoidance:

Automate the scorecard process as much as you can.  Even if full system integration is not achievable, use a common template and automate an email request on a monthly or quarterly basis to a trusted contact(s) to provide the data.

Pitfall:

It is difficult to summarize a lot of unique metrics for an executive.

Pitfall avoidance:

Two steps, first categorize the metrics (ex. cost, quality, time etc.) and second, do a simple calculation of the percentage of metrics that are above, at or below goal per category.  That could be a reasonable first-pass executive summary.

Pitfall:

Metrics are difficult to understand and analyze so they are not embraced.

Pitfall avoidance:

Compare metrics to points of reference like a trend, goal, or benchmark.  In addition, consider using color-coding (red, yellow, green) to help a user quickly understand it.

Pitfall:

Scorecard data seems to always identify a problem long after it happens and this lag effect makes the scorecard less useful.

Pitfall avoidance:

Build in some quick pulse-like feedback data collection points that occur at a more frequent and regular cadence.  In most cases, people sense or know of problems in the moment and then they show up in performance measures later.

Pitfall:

The vendor is not overly engaged in using the scorecard for continuous improvement, nor are my stakeholders.

Pitfall avoidance:

Three ideas. First, get them involved by giving them a voice, so at minimum ask people for feedback on the relationship on a regular basis. Second, share scorecard data with people, including vendors.  Third, create action plans and assign people on both sides as either owners of the plan or owners of specific tasks to engage them in corrective actions, innovation actions or improvement actions.

Conclusion:

The above pitfalls and ways to avoid them are not meant to be a complete list but are representative of common challenges that impact supplier managers when using scorecards.   If small adjustments are made such as the above, it may result in more meaningful scorecards that create more collaborative supplier relationships.

 

 

January 13, 2017

Webinar: How to Build Measurable and Sustainable Supplier KPIs

When: February 8, 2017

Time:  11am Central/ Noon Eastern

Cost: Free

Description:

This webinar will share practices to use when designing key performance indicators (KPIs) for suppliers that are going to be measurable and sustainable. The webinar will answer the following questions: How do I design KPIs that create accountability with my supplier? How many KPIs should I have for my supplier? What types of KPIs should I have with my supplier? How do I establish goals for my KPIs? When and how often do I measure KPIs? Who is responsible for KPIs? How do I best collect KPI data? What do I do with KPI data once I have the results? KPIs are important to effective supplier performance management and building a positive supplier relationship. Ensuring KPIs are set up for success will bring about a culture of empowerment and accountability in the supplier relationship.

Registration: https://join.onstreammedia.com/register/clientloyalty/xit5fct

January 6, 2017

How do auditors view supplier management?

Interestingly this question has come up a few times so it may be worth some thoughts on the topic.  The origins of the question ranged from one organization having an internal auditor write up performance issues to the head of the audit committee of the Board of a Fortune 500 company mandate a supplier management program.

As a former internal and external auditor for many years I can provide some perspective on this question.

Auditors typically review the procurement function and do pay attention to material supplier relationships determined mostly based on spend but also based on strategic link to the organizations business.  Auditors may suggest improvements in supplier management processes if they see non-existent or poorly performing processes.  Auditors may escalate to senior management or to the audit committee when they believe there is significant risk in supplier management evidenced by contractual breaches or material service level agreement misses, among other things.

So, as a supplier relationship manager, sourcing manager, or procurement professional, what can be done to be in the good graces of the auditors?

Document and maintain a standard process.  Auditors like to see ‘clean’ processes evidenced by clear policies and procedures and well formulated inputs, activities and outputs.  An ‘ad hoc’ process is a ‘red flag’ to the auditor so standardize your supplier management process.  Examples of standardization include the approach to supplier scorecards, the process of doing supplier reviews, the data collection tools and the standard tags used to determine contract and document compliance.

Measure Performance.  Auditors place value in performance measurement.  It is a validation that a process is functioning as designed.  Supplier managers should have a small, balanced set of key metrics they use to manage strategic suppliers’ performance.  These measures should be ‘measurable’ meaning they have some quantification to them and are measured relative to a goal or acceptable level.  Not having these in place is an obvious red flag for the auditor.

Use remediation plans.  If performance is repeatedly below acceptable levels, are there documented remediation plans to clearly emphasize the necessary steps needed to get back to minimum acceptable levels?  Do these plans detail who is responsible, what they need to do and by when?  These plans may very well form the supporting detail to justify performance credits or termination so they’re important to standardize.

Assess supplier risk.  A significant role of any auditor is to ensure risk is assessed and mitigated through internal controls when warranted.  Auditors will want to ensure the supplier manager is paying attention to risk throughout the lifecycle of the suppliers work, not just when they are sourced or renewed.  Further, while financial risk or IT risk is important, auditors look at process risk, personnel risk, external threats, and measurement risk.  For example, if the supplier provides personnel that lack the requisite skills to work on a project that is part of personnel risk and they would want to investigate whether the supplier management process is assessing this on a regular basis.

Ensuring the supplier is compliant.  A basic audit test is to pull a contract, look at its requirements and see if the supplier is meeting those requirements.  So, in addition to testing for compliance to SLA performance , auditors are likely to test for other areas too.  For example, if the contract states the supplier must have a valid Certificate of Insurance on file at all times, the auditor may ask for evidence of this.  Or, if the contract states that supplier employees must have annual background checks, they may ask to see this.  The point is that a supplier manager must have the ability to tag certain contract or document standards that are necessary for compliance and then search for any that are in or out of compliance so they can remedy an out of compliance situation quickly.  Even more, the supplier manager should have automated workflows that remind them when to start working a contract renewal decision or when a dated document is going to expire.  Auditors prefer preventive controls like the work flow control vs. a reactive control such as a search for out of compliance terms.

Spend control.  An auditor will look at actual vs. budgeted spend.  They will want to see if the spend was over or under budget and why.  What approvals happened if it was over budget?  What controls existed when it went over budget.  They may look at unusual or irregular spend as well. What cost centers, business units or spend categories were notoriously over budget and why?  Being able to reasonably provide this to the auditor is important. More important is having a supplier manager that can see this information on a regular basis to monitor and manage it regardless of what the auditor may do with this information.

Sourcing, procurement and supplier management teams are challenged with doing the aforementioned activities for a variety of reasons.  Perhaps there is clunky legacy system, perhaps this is done in a spreadsheet that cannot scale with the volume of suppliers, perhaps supplier managers are exerting too much manual effort due to lack of technology or perhaps it is because the organization doesn’t see it as a priority.

Lack of priority is the one that gives me serious pause.  Is governance and stewardship not a priority?  Is mitigating business risk not a concern?  Is damage to an organization’s reputation resulting from a suppliers actions no big deal?  Even if the answer to all of these is effectively saying it is not too important, what about the business case to at least save cost?  Research shows that improving supplier management can save 5% to 15% of annual contract value.  In most organizations the ROI is highly positive as a result.  If the other items I mentioned were also drastically reduced would it be a priority then?  Something to think about next time the auditor comes knocking.

December 28, 2016

The Top 10 Supplier Managers New Year’s Resolutions

Supplier managers are confronted with multiple challenges ranging from manual, tactical tasks that must be done to wrangling suppliers to be accountable for their performance.  ClientLoyalty, a supplier performance management technology firm, has studied supplier managers for a while now and here are our Top 10 2017 New Years Resolutions for Supplier Managers to help them not only be more impactful in 2017 but also make their jobs easier.  By the way, this list is not in any ranked order, just a simple list of 10.

1. Use Action Plans with Workflow Automation

Action plans drive future behavior.  Whether it is a corrective action for poor performance or the initiation of a contract renewal, action plans remind people of who is doing what and by when.  Action plans symbolize accountability and empowerment.  Layering work flow automation on top of these plans means that people are reminded of the tasks they must do in this process making it easier to accomplish those tasks on time and without incident.

2.  Share Data with Your Suppliers

Be collaborative and transparent by sharing a subset of your supplier scorecard with suppliers.  Do this all the time and allow suppliers to logon and see the data on their own so they can use the data to proactively make changes before your team needs to escalate problems to them.

3.  Use Tagging to Manage Supplier Documents and Contracts

Tags are ways to organize information when many people are constantly involved in adding and updating information.  Standard tags create structure, minimize error, and organize information for better search/find commands and to easily audit document and contracts that are out of compliance.

4.  Create a Practical, Scaleable Scorecard

Try not to create scorecards that involve complex math (i.e. significant weights and point assignments) and highly custom views that cannot be compared or consolidated.  While this may seem like a good idea for one supplier it will not scale to lots of suppliers.  Think about simplicity and ways in which the math can easily aggregate and benchmark.  Consider simple, proven models like Net Promoter System to make scorecards practical and scaleable.

5.  Replace Annual Surveys with Continuous Feedback

Annual surveys are lagging indicators that tend to rehash old problems.  Continuous feedback is ‘in the moment’ and can be leading indicators of what may come.  Replace lengthy, annual surveys with articulate, concise pulse-like surveys that capture feedback more real-time to spot problems and opportunities quicker.

6.  Incorporate Relationship Risk into Risk Management

Traditional risk management focuses on financial and IT risk.  Relationship risk focuses on areas like people, process, culture, and measurement.  These categories of risk appear during the relationship and can be a disaster if not properly controlled.  What if the wrong supplier team is on your account?  What if the supplier uses a process that does not function as designed?  These and other relationship risks need evaluation and management too.

7.  Migrate Off Spreadsheets, Ad Hoc Surveys and Shared Drives

Its 2017 so let’s stop managing multi-million dollar relationships and relationships that are highly strategic and visible with spreadsheets, generic survey tools and shared drives.  These are great resources for discrete projects but not to manage the complexities of ongoing buyer/supplier relationships.  Tools that update scorecards more real-time, that automate data collection and work flows, that share data with vendors, and categorize, benchmark and aggregate suppliers can be done with highly secure, highly affordable, cloud-based tools meant specifically for this function.  Let 2017 be the year we no longer rig up supplier management tools using resources that are ill equipped to do this in a practical and scaleable way.

8.  Create Measurable, Accountable KPIs

Key performance indicators (KPIs) should be challenging yet attainable measures of success in a buyer/supplier relationship.  They should be a small set of objective, balanced metrics that are quantifiable with goals and measured quarterly or monthly.  Hundreds of KPIs or KPIs that are too subjective are hard to sustain and manage over time so try to avoid these.

9.  Trust but Verify

Make the vendor responsible for submitting monthly or quarterly KPIs but verify their information by asking people internally what they think the KPIs might be as well.  Put responsibility on the vendor to update key documents that are required to be in compliance to do business with your team but verify the documents are current and correct.  The key is to put as much in the hands of the vendor as possible but to have the internal checks in place to ensure the request was done right.

10. Move Beyond Traditional ‘Supplier Scorecards’

Scorecards are great communication and performance management tools.  But the scorecard itself is not the desired outcome so don’t treat it like it is.  Focus on getting more out of the supplier.  Use scorecards to change culture, be data driven, create accountability and transparency and positively, continually improve.  So move beyond the notion of the scorecard being equivalent to supplier management and consider it a subset of the strategic process that is supplier management.  This means scorecards should be much easier to produce, review and use day-to-day so that it shifts focus from scorecard compilation as the process to a value-driven supplier relationship management function.

The ClientLoyalty team wishes you a peaceful and prosperous new year!

December 27, 2016

Webinar: How to Create an RFP for a Supplier Performance Management System

Join us January 11th for this free webinar.

This webinar will provide insight into several key factors that go into an RFP for a supplier performance management system. Specifically, the webinar will provide details on the benefits the vendor should describe in its solution, the features the vendor solution should equip managers with by using its system, the capabilities the vendor system offers to manage complex supplier relationships, and the functionality that the vendor solution provides specific to data collection, reporting and process management. Webinar participants will also be eligible to receive a complimentary RFP requirements template.

Register at https://join.onstreammedia.com/register/clientloyalty/agax3qo.

December 21, 2016

Supplier Performance Management Briefing – Jan 31 2017 in Chicago

On January 31st 2017 ClientLoyalty is hosting a Supplier Performance Management Briefing at Loyola University in Chicago.
This session will explore ten actionable practices organizations can use to get more out of their supplier relationships in a collaborative, creative and transparent way.  Proceeding the presentation will be a live demonstration of supplier performance management technology for participants to glean creative insights into tools to help them get more value from suppliers.
The session starts at 8.30 and ends at 11.15.  The session is free to attend but space is limited.  If you are interested in attending, please click the following link to register for it:  https://goo.gl/forms/hpVbo5KvlD7pnUqN2
We hope to see you there.

December 14, 2016

In Supplier Management, Go Beyond Supplier Scorecards to Really Get More Out of Suppliers

Supplier Scorecards – Can They Be Easier to Do?

As a supplier performance management technology company we are often asked about supplier scorecards.  Scorecards are critical to creating a culture of accountability with suppliers.  Most organizations want to automate manual data entry or centralize disparate spreadsheets.  Technology makes this a fairly straight forward endeavor provided your scorecard is not a complex, cumbersome template that won’t scale or be practical to do.  So prior to automating it, think about making it simpler and more scalable.

While scorecards are purposeful and ‘manage’ suppliers, relationship managers should give serious thought to going beyond a supplier scorecard to really get more out of suppliers and do so in a way that is collaborative and transparent.

Performance Beyond Scorecards – What’s in it?

To truly go beyond a traditional scorecard, you have to look at performance as a collection of data types that are mutually exclusive yet when combined are a powerful way of viewing the health of a supplier relationship.  We believe scorecards break down into 4 discrete types of data.

  1. Operational metrics. These are quantifiable indicators of actual performance.  Examples include number of safety incidents or average time to close a support ticket.  This information is measurable on a regular basis against goal.

 

  1. Regardless of operational results, if the buyer and supplier teams don’t approach the relationship with the same level of commitment it is a doomed relationship.  Feedback comes from both teams on a regular basis to continuously review relationship fit.  Using simple models like Net Promoter System make this easy and glean leading as opposed to lagging information.

 

  1. In a connected world, suppliers can help or hurt your brand.  Constant monitoring of news and social networks for evidence of positive or negative sentiment is important.

 

  1. Whether the relationship managers own this or not, risk is a factor in overall supplier scores.  Beyond traditional finance and IT risk include risk around people, process, measurement, culture, and external factors.

 

However, it is not enough to simply track these additional measures if nothing is done with them to advance the relationship and get more out of suppliers.  Going beyond a supplier scorecard means driving a continuous improvement workflow process that engages both parties in accountable ways to drive specific tasks toward a mutually agreed goal.  We call this an action plan.  Action plans link to performance indicators and clearly define who owns the plan and the tasks and the timing to get the job done.  Action plans written properly with automated workflow reminders are powerful tools in continuing to improve and in resolving problems.

The Process Side of Supplier Management

Going beyond scorecards means that you are optimizing a process not only to collect, store, process and report scorecards but to also truly improve how supplier performance management and compliance is done.  This involves rethinking your processes in four major areas of supplier management that can be time consuming and inefficient.

 

  1. Document management. Supplier managers and the suppliers must be able to share and update documents easily and in a centralized way.  As documents with dates expire, a workflow should notify the supplier or others to update it.

 

  1. Contact management. How can you help people find the right assistance from your team or your supplier at the point of need?  You do this through a good contact management system that defines the roles on your team and the suppliers so anyone can access the right people at the right time.

 

  1. Contract details. In the case of contract management, the risk is in the details.  So focus on them.  Ensure standardized tags can be created for different types of contracts so contract managers can pull up contracts in and out of compliance.  In addition, ensure your team can deploy a standard contract renewal workflow process so that key personnel are proactively guided through the steps toward a renewal decision.

 

  1. Spend analysis. Relationship managers need to understand how far from budget was the actual spend.  Further they need to understand the cost centers where that spend was allocated and the types of spend it breaks into.  Being able to easily do this and compare a supplier spend to the category they’re in is important to the relationship manager.

 

Prioritize Going Beyond Supplier Scorecards

As 2017 nears, research suggests that supplier performance management is a high priority amongst many organizations.  Future forward companies are not only looking at automating a spreadsheet of numbers but really looking to improve performance and process to create a continuous improvement culture with suppliers that ultimately leads to getting more out of the relationship.

 

 

 

December 6, 2016

Two Free Webinars in the Next Two Days!

Join us for creative insights to improve your supplier performance management function with two free webinars taking place on December 7 and December 8 2016.  Each begins at 11am Central Standard Time.

 

December 7, 2016 Making Vendor Process Management Less Cumbersome and More Compliant

Register at https://join.onstreammedia.com/register/clientloyalty/oyt8wif

Vendor process management is complex and cumbersome.  A vendor manager is handed a 200-page contract and expected to manage micro details in it along with dozens of other contracts of similar complexity.  This webinar will share how vendor managers can make vendor process management easier to do and more compliant in its outcomes.  It will explore processes such as contract details, document centralization and contact role management.  It will review supplier performance management leading practices as well.  The outcome is better appreciation for the vendor managers daily tasks and better ways for the vendor manage to do them.

December 8, 2016 Implementing a Supplier Scorecard System – Business Case, Features, Demonstration

Register at https://join.onstreammedia.com/register/clientloyalty/hr9vg4v

Implementing a supplier scorecard system has become a priority for many organizations in 2017.  This webinar will discuss how to build a business case to implement a supplier scorecard and the features you should expect in an automated scorecard system.  The webinar will then demonstrate a supplier scorecard system from ClientLoyalty, a supplier performance management software company.

Space is limited, register now to reserve your spot!

November 22, 2016

Resources for Improving Supplier Performance Management

Over the last several months our team has done a series of webinars on various topics centered around supplier performance management. We recognize everyone has busy schedules and may not have viewed all of these webinars so we want to share the slides as a supporting resource to anyone working on supplier management as a priority for 2017. Below are the topics we presented on in recent months and would be happy to share the slides with anyone where you have interest.

1) Building the Business Case for a Supplier Scorecard System
2) Evaluating Supplier Relationship Risk
3) Leading Practices to Help Suppliers Do More for Your Organization
4) Diagnosing the Health of Your Supplier Management Function

Our next webinar is on December 7th at 11am central time. This webinar will share how vendor managers can manage contracts, contacts, spend and documents more efficiently and effectively. For more details and to register for this free webinar please go to https://join.onstreammedia.com/register/clientloyalty/oyt8wif.

If you would like the supporting resources for any of the topics above just email us at info@clientloyalty.com.

November 21, 2016

Supplier Scorecards:  Structured yet Scalable vs. Custom yet Complex?

Recently we spoke at an event comprised of supplier managers and others in the procurement profession.   A mini debate began over supplier scorecards.  There seems to be much emphasis now being placed on having them but a lack of consensus over what is in them.

As a result, we had a great dialogue over how best to build supplier scorecards.  One person argued they need to be highly customized by organization and by supplier within the organization.  After all, every organization is unique and every supplier relationship is different.  This person articulated the benefits of this custom approach and how supplier performance management was focused and precise when scorecards could be highly tailored to the individual supplier relationship.  Further, they cited that unique metrics should have weights that account for the emphasis or de-emphasis placed on one metric over another.  Again, this yields a more focused dialogue internally and with the supplier.

Contrast this to another person in the room who had a different opinion on the matter.  They indicated that consistency is important.  A scorecard that can aggregate different types of data to tell a story by comparing this information to benchmarks and relevant points of reference is also providing focus to the supplier as well.  They cited the ability to make the scorecard process repeatable and resource efficient too as a value-add in their process.

So, both professionals in our example above had sound arguments for their approaches.  Should your supplier scorecards be structured yet scalable or custom yet complex?  It turns out you can and should make your scorecards such that you manage performance properly but do so within the resource limits your team and the supplier team has to do it.  It is for this reason we tend to lean toward structured yet scalable.

Structured yet scalable doesn’t mean you have to have 1 scorecard and make everything fit into it.  It is highly plausible that suppliers will have unique metrics they are to be evaluated on and you may have unique survey questions you ask about one supplier but not another.   That’s okay.  The key is to ensure both parties can administer and maintain the integrity of the scorecard over time, despite the comings and goings of people within each organization.

For example, in the ClientLoyalty supplier performance management system, suppliers can have identical, similar or very different operational metrics, risk assessments and feedback surveys.  So there is customization to account for the uniqueness of supplier relationships.  But, there are business rules, templates and configurations that prevent the user from making these customizations so complex that they are not comparable to other scorecards and more importantly not understandable to the people who need to use this information to make positive changes.  Customization is fine with guardrails to prevent things from going off the cliff.

Structure prevents failure whereby data becomes a giant glob of meaningless numbers on a sheet that would be too time consuming to interpret.  Structure also permits scale.  When the same templates are used to guide the collection and reporting of disparate data the supplier performance management process can scale.  Scale is important when there are limited people, time and financial resources to maintain a process over time.  In most organizations looking to implement a supplier scorecard system, they do need to scale it over time.  If that is the case, you want structure to sit on top of your customizations to minimize complexity and create repeatable scorecards that scale to as many suppliers as your business needs require.

It was not long after this debate happened that we received an email from someone. This person’s organization had built a highly custom scorecard process with lots of weighting adjustments on their data.  The writer was lamenting that her process was cumbersome and posed challenges when handing it off to others on her team and to implementing it across new suppliers.  We wrote her back and told her to consider a common method for creating, collecting and reporting the data and it would not result in a major loss of customization but it could help resolve the inability to scale her process while reducing complexity.

The lesson is to not be afraid of what you’ve done in the past.  But embrace change to it so your supplier performance management process can thrive into the future.  At ClientLoyalty we have seen a lot of scorecards and like to break them out into four categories:  performance, experience, risk and reputation.  We also like to leverage credible methodologies like Net Promoter System so that analysis is not only valid and reliable but simple and easy to do.

So the next time you’re contemplating a supplier scorecard system, think about longer-term use. What would it look like with 20 or 200 suppliers vs. just 2?  Would it scale?  Or are the customizations worth the complexity?  Lastly, can you use it to stimulate positive change that drives performance exceeding expectations?

October 26, 2016

Vendor Process Management Should Be Easier

It is easier said than done.  That is so true when it comes to vendor process management.  Vendor process management are the workflows and processes that buying organizations managers need to do to ensure compliance and communication with the vendor are in control.

Vendor managers already have enough challenge in centralizing and automating supplier scorecards.  Review my prior blog post on this topic at https://www.clientloyalty.com/2016/08/03/why-implement-a-supplier-scorecard-system/ if you are struggling with scorecards.

But, vendor process management can be broken down into three primary areas that seem easy on the surface but are more complex and cumbersome to actually do.  These are contact management, contract details management and document management.

Let’s first talk about contact management.  Who are the people in the buying entity that play a role in the supplier relationship and what role do they play?  Who are the people at the supplier and what role do they play?  These are harmless questions but difficult to find answers to when you need to send out requests for feedback or KPIs or you want to create an action plan to improve performance.   Contacts are often not centrally stored and the only contacts that are stored this way are for accounting purposes.  So the lack of access to critical contacts at a point of need is a huge vendor process management deficiency.  The goal is to centralize these contacts in a shareable system and assign roles to each contact that are from a standardized role list.  Then it becomes easier to find the right people at the right time.

Next, let’s talk about document management.  Again, it seems simple enough.  But it is not.  Many times vendor managers never see the actual contract or have a hard time finding meeting notes from the last quarterly review meeting.  How about trying to track down an SLA, COI, MSA or NDA?  Where are these at when you need them?  Like contact management, central storage and standard tagging is critical to shareable use at the point of need.  That is why it is important to provide a way to upload critical documents of any kind (KPI source information, a presentation, notes, a contract, a security certification etc.) to a central system and to tag each document with a standard tag from a tagging schema so users can search and find documents matching the tags in an efficient manner.  What if the document is too sensitive to store this way?  Why not put a link in replacement of the actual document, the link can go to a secure site for access?  Or, how about referencing the person and their contact information to request the document?  These mitigate security risk while accomplishing the objective of finding the document at the point of need.

Finally, there is managing contract details.  I am not referring to the process of drafting a contract, sending it around for review, finalizing it and signing it.  Tools like that tend to exist and do a decent job.  I am talking about the handoff whereby the legal team or procurement team finalizes the agreement and now the vendor manager has to manage dozens of details in a 200-page contract.  How do they find those details, how do they ensure compliance against them?  How do vendor and contract managers do this consistently across the team?  The key is to have each manager upload a standard set of meta data on the contract and tag this meta data with standard tags.  Sure custom information can be tagged too but the standards are critical to finding complete or incomplete contracts.  For example, lets say I am trying to find all contracts expiring between now and year end that do have documented cancellation clauses so I can review those clauses before the term ends.  A search on the tag ‘cancellation clause’ brings up those contracts so I can then see the meta data of the cancellation clause itself.  Conversely, let’s say I want to finds all contracts missing a COI.  I perform an Audit whereby I search for all contracts missing the tag ‘COI’ and any contracts returned do not have one currently on file and I as the manager need to request that of the vendor.

Managing contract details is serious business because it gets into compliance matters.  As a result, making it easy for managers to quickly find specific details in a contract that exist or don’t exist is really critical to ensuring compliance in the vendor relationship.

In the end, supplier scorecards are becoming automated, centralized, flexible and shareable.  Collecting KPIs, feedback, risk and reputation data are the cornerstones of a well-balanced scorecard.  But, vendor managers also need tools to reduce manual burden on processes like contact management, document management and contract details management.  Lack of integrity of process in these areas puts the vendor relationship function at serious risk.

The good news is that today’s technology can solve these problems.  There should be no reason why vendor managers are forced to use spreadsheets, disparate shared networks and ad hoc survey tools to do these things for high risk and high cost vendor relationships when there are central, secure, user friendly tools out there that automate scorecards and manage vendor processes.  Management needs to allocate a little bit of resources to support the vendor manager by equipping them with modern day tools to do a complex job.

Mic drop.

September 28, 2016

Tips for Building Useful KPIs to Manage Suppliers

When implementing supplier scorecard systems we are often asked how to create meaningful key performance indicators (KPIs) so here is a blog post with 4 pieces of advice to do just that.

  1. Understand what you want out of your KPIs.

KPIs are the vital signs that help manage the health of critical aspects of supplier levels of performance.  They are often so important they are called out specifically in a contract.  Further, KPIs are likely to be a major source for how the relationship is judged on a go-forward basis because they will be measured and most of the time you manage by what gets measured.  So be very clear on how KPIs govern the relationship.  Invest in them if they will have impact.  If they don’t reconsider if it is really worth the time to use KPIs if they are not going to be part of the management discussion.

  1. Create a small yet well-balanced set of metrics.

Rather than have hundreds of measures, we suggest a small set of metrics but they are balanced.  The balance that tends to work well is to choose a few measures from categories such as revenue, cost, quality, time, productivity, satisfaction, or risk.  The balance will enable your team to ensure that measures are not isolated to one aspect of performance and the balance will avoid having multiple measures leading in the same type of metric.  You don’t have to have measures in every category but do strike a balance.  You only need a small handful of measures if they are balanced.

  1. Make your metrics S.M.A.R.T.

When collecting measures, the most accurate and reliable measures should be ‘SMART.’  So, make them ‘S’ specific to a targeted area of improvement.  Next is ‘M’ for measurable so there is a quantification of the actual and goal indicators.  Then there is ‘A’ for assignable, so hold someone accountable to measure and track progress.  After that there is ‘R’ for realistic, this means the goal you set for performance should be challenging yet attainable.  Finally, there is ‘T’ for the time the goal should be achieved as well as the period of measurement, we suggest most KPIs for supplier management be monthly or quarterly.

  1. Make it part of overall supplier management process.

KPI measurement is not a separate process but part of managing suppliers.  A reasonable KPI system measuring a small, balanced set of measures against realistic goals on a monthly or quarterly basis is a complement to measuring routine feedback from personnel within the process.  It also complements risk assessments and any marketplace sentiment being gathered. Taken as a whole, a meaningful supplier score can be calculated where KPIs are part of the score along with these other critical data points.  This paints a more complete picture of supplier health.

Overall, KPIs need to be thought through to be done right.  KPIs that lack the criteria mentioned above could create more harm than good.  Consider using measurement experts internally or from 3rd parties to assist in creating and reviewing your KPIs before they are broadly used.  Also consider tools that have deep KPI libraries so your team doesn’t have to start with a blank sheet when building a KPI program.

September 19, 2016

Why ‘Good Enough’ for supplier management is not really good enough.

Supplier management is all we do.  So we live and breathe it.  We talk to numerous companies on a weekly basis.  Last week someone we spoke to said that what they do is ‘good enough’ and nothing more needed to be done.  Many times we tend to agree with the philosophy if it isn’t broke, don’t fix it.  But not in this case.

In this case, the organization has over 2,000 suppliers.  Roughly 5% of them are considered highly strategic.  Today the company uses a spreadsheet to track metrics and they use a detailed survey to go out internally once a year to see how things are going.  To them, doing this on the 5% of suppliers is ‘good enough.’  The remainder of the suppliers are managed ‘by exception’ where complaints from internal consumers drive escalations and action plans.

When we asked why is managing this way ‘good enough’ the answer we received back was because it was all their resources could provide in terms of management.  When we asked if the major use of the resources was in using the data to create empowerment and accountability to change behavior the response was ‘sometimes if we have time.’  So in this case, we don’t think ‘good enough’ is really ‘good enough.’  Why?  Well there is extreme risk in managing this way especially with strategic, visible and costly vendors.  Even for vendors that are not in the top 5%, reacting to problems has likely already caused considerable waste and lost productivity.

We all have limited resources.  It is the most common theme amongst procurement and sourcing operations that we hear about.  Supplier performance management is not so much about how much you do but how you use what you have to create positive change.  So how can we improve ‘good enough’ so we get ‘better.’  Here are a few practices future-forward organizations do to create practical, scalable and repeatable programs to manage their vendors.

  1. Automate what you can and recognize it won’t be 100% automated and perfect.  Many organizations will continue to do things with 0% automation if it cannot be 100% automated.  This is silly.  If you can automate an email request that then automates a response for a key metric that automatically goes into the supplier scorecard and automatically benchmarks and compares it, isn’t that better than a spreadsheet that is ‘good enough?’  it is not the perfect integration but it is a start.
  1. Don’t collect 400 KPIs when 4 might do. With key performance indicators (KPIs) we often hear that there are either too many or none at all.  So organizations track hundreds or settle for a subjective survey to monitor performance.  Don’t do that, it is not ‘good enough.’  A better approach is to have a small, well-balanced set of quantifiable KPIs.  For example, while out at a company the other week we input 4 KPIs and one was cost-based, one was quality-based, one was project management-based and the final one was satisfaction-based.  They had goals and we set them up to automatically go out monthly for actual to goal comparison.
  1. Don’t just look at risk when sourcing a vendor or renewing them and don’t just look at traditional risk categories like financial or security risk. That is not ‘good enough’ and it can be better.  The vast majority of risks impacting your team will arise when the relationship is happening not before you source them.  So you should assess risk in non-traditional ways such as by surveying for areas like personnel competency, process functioning as designed, culture fit and measurement alignment.  This is a ‘better’ way to do it.
  1. Surveying with lengthy surveys a few times a year to get feedback on your team’s relationship with the supplier is not ‘good enough.’ Look at the trend in employee performance management and customer relationship management.  There is a clear move away from lengthy, cumbersome surveys done periodically and a move toward frequent, shorter bursts of feedback that are more leading than lagging in their use.  Further, these short bursts are not 50 questions they are likely 1 to 5 questions so response rates go up and data utilization goes up.  This is a ‘better’ way to do it.
  1. Capture news and social sentiment in a managed way vs. doing an occasional Google search because that is not ‘good enough.’ There is a lot out there on your suppliers.  Use smart algorithms to mine news and social sentiment, tag it and incorporate it into your supplier ratings.  That is a ‘better’ way to do it.
  1. Sharing data with your suppliers only in review meetings through lagging, static reports is not ‘good enough.’ If you share an online version of your supplier scorecard with real-time data updates and you filter out the sensitive information you will create a culture of accountability with the supplier and empower them to make positive change before your team feels a need to emotionally escalate issues to them.  It is a ‘better’ approach and one that is more transparent and collaborative too.
  1. Thinking that current tools are ‘good enough’ just because we ‘get by’ or ‘we got it when we got this other system,’ is not really good enough given what’s at stake.   The reality is that future-forward companies recognize that other tools are designed to do other things really well and that most likely doesn’t mean they do supplier performance management well.  They also realize that cobbling together information for major supplier decisions from disparate places is not only manually intense but risks losing critical information in the process.  Centralized tools designed specifically to automate and systematize supplier scorecards are a ‘better’ approach to dealing with these deficiencies.

 

There are many more examples we can cite but a blog post is supposed to be concise so we will stop at seven.  The point being made is that ‘good enough’ is not really good enough if you really think about it.  If hundreds of thousands or millions of dollars are spent on suppliers or if suppliers are really visible or strategic to your organization should the notion of ‘good enough’ be challenged?

The irony of all of this is that doing something ‘better’ doesn’t require a major overhaul of resources.  Doing something better is also very affordable.  Our data suggests that doing ‘better’ supplier management vs. ‘good enough’ can save 10% in contract value and the ROI is over 80 times the investment to do so which is most likely a rounding error compared to the money spent on the vendor or in the manual, lost productivity doing ‘good enough’ practices.  So in the end, ‘good enough’ really isn’t good enough.

September 16, 2016

Approaches to improve your supplier management people, process and performance

As the last calendar quarter of 2016 approaches, future-forward organizations are sharpening their edge when it comes to supplier management.  ClientLoyalty is offering three approaches to improve supplier management from a people, process and performance perspective.  Each approach is quick and affordable and the outcomes are results-oriented and readily applicable now and into 2017.  More detail is below.

People

ClientLoyalty offers a half-day interactive supplier management workshop to educate your personnel on leading practices to take your teams supplier management function to a new level.  Topics covered include change management, on-boarding, project management, performance management and risk management.

Process

ClientLoyalty will diagnose your current supplier management process and compare it to leading practices and benchmarks.  A 15-point checklist derived from best practices will be used to understand your current process.  A summary report will compare each point to best practices and benchmarks to help your organization create a sense of urgency now and prioritize improvement opportunities into 2017.

Performance

Leverage ClientLoyalty’s standard assessments for supplier satisfaction, risk, or performance and customize it for use in your year-end supplier reviews.  ClientLoyalty’s measurement experts will review the standards with your team, customize a final version, collect the data from your team and/or your suppliers teams and present the results with summary recommendations to help you understand supplier health and areas to improve upon going into 2017.

Interested in one or more of these approaches to improve your supplier management process?  Contact jeffrey.berk@clientloyalty.com for details.

Blog Archives

March 21, 2017

KPIs and Insights

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March 9, 2017

What’s The Right Supplier Management Measurement Mix?

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March 2, 2017

How Do You Organize and Optimize Supplier Relationships Across the Enterprise?

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February 24, 2017

Help with Supplier KPIs? Assistance with Quantifying Supplier Impact? Learn how with these webinars.

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February 1, 2017

Webinar: Quantifying the Financial Impact of Improved Supplier Performance Management

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January 22, 2017

Quantify the Real Value of Better Supplier Management

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