Archive for August, 2013

You want me to do what? You are a Buyer and just received a call or a reminder that an annual review for one of your companies key vendors is due. In your already busy 9-5 schedule you have to find time to crush off an annual vendor performance review, supplier evaluation or supplier scorecard.  Whatever your company calls it does not matter, finding the time to establish a vendor rating system and properly evaluate a supplier is the challenge.

In today’s purchasing, the Buyer is responsible for motivating the supplier to improve higher performance levels at a lower cost. To do this, more emphasis is being placed on the relationship, closer cooperation and collaboration or Supply Chain Management. Regardless of the industry you presently represent, completing annual vendor evaluations is a vital part of the supply chain function and having a proven Vendor Rating System will make your life a whole lot easier.

Your rating system will improve each time you complete or apply it. The key is to establish a system, ask the right questions, involve the right user groups and simply start the process. The benefits of improving dialogue, measuring performance will help motivate your suppliers to improve service levels and lower cost. A good vendor scorecard will show the suppliers  how their improvements are being effective and will provide an opportunity for the Buyer to compliment the supplier on achievement as well as highlight any downturns on performance.

What do you review and what types of questions you need to ask are all included in our Supplier Evaluation Form so take a minute and check out this preview of our sample scorecard.

Supplier_Scorecard

vendor performanceEvaluating a Supplier, Sub-Contractor Evaluation, Performing a Site Audit? All of these forms are included in our Mega and Purchasing Manager Packs. How much is your time worth? Let our tools help you hit the ground running.

Detailed previews are available on our Channel– Please Subscribe and Like.

There are many areas of responsibilities in the supply chain. For example, a purchasing department might have positions for a secretary, an analyst, an inventory control clerk, buyer(s), contract coordinator, audit, quality control, transportation, logistics, warehouse, shipping, receiving and more. Depending on your company size you might be responsible for some or all of the above job functions!

Purchasing can no longer be stuffed into a dark corner with a phone, fax and internet connection. In other words, it is no longer considered an isolated function. It must work closely with both internal and external clientele. Internal would be your user groups and external would be your suppliers. For the supply chain to be effective and achieve a competitive edge all these pieces must work closely together.

Lets break down all those above job functions into two groupings.

1)    Logistics
–    The incoming movement of goods from the source (the supplier) to your operation
–    Inventory – management of stock levels, warehousing and storage
–    Distribution of stock items to your user group or customers

So transportation, warehouse, shipping, receiving, inventory control all appear to fit category #1

2)    Purchasing
–    Procurement of goods and services
–    Contracts and commercial terms
–    Vendor Management

Purchasing buyers, contract coordination, audit, quality might more fit category #2

Many in purchasing would Read the rest of this entry