Procurement’s performance is consistently, if not notoriously, measured based on their ability to generate cost-reductions. As we well know, there is far more complexity and opportunity for value potential that this does not take into account.
Beyond improving supplier performance, leveraging analytics for SPM (Supplier Performance Management) can be a powerful approach to assessing and mitigating risk.
While some measures for desired supplier improvement will reduce costs or improve quality, others may bring to light the potential for supply disruption.
The same is true of our suppliers. If our purpose for measuring supplier performance is to drive operational improvement and support innovation, procurement must take a multi-faceted approach. A successfully structured approach will incorporate multiple metrics and automation, as well as internal and external data inputs.
The ideal scenario in any Procurement initiative is to generate positive results while also improving relationships with key suppliers. Download this White Paper to learn how to: