SCM 355 Important Concepts Chapter 9

SCM 355 Important Concepts Chapter 9 - SCM 355 Important...

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SCM 355 Important Concepts Chapter 9 (Supplier Management and Development: Creating a World-Class Supply Base) What is Supplier Performance Measurement? Supplier performance measurement includes the methods and systems to collect and provide information to measure, rate, or rank supplier performance on a continuous basis. Supplier Measurement Decisions What to Measure: delivery performance, quality performance and cost performance Measurement and Reporting Frequency Uses of Measurement Data Types of Supplier Measurement Techniques (Exhibit 9.2) Categorical Systems Weighted-Point System (Exhibit 9.3) Cost Based (Exhibit 9.4) Supply Based Optimization: Creating a Manageable Supply Base Advantages of an Optimized Supply Base Buying from world-class suppliers Use of full service suppliers Reduction of supply base risk Lower supply base maintenance costs Lower total product cost Ability to pursue complex purchasing strategies Risks of Maintaining Fewer Suppliers Supplier dependency Absence of competition
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SCM 355 Important Concepts Chapter 9 - SCM 355 Important...

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