Through the years Supplier Performance Management has been much talked about but in reality few organizations have implemented a program which delivered meaningful reports and sustainable results. I remember in the late 1970's, when I was a young Quality Auditor at The Gates Rubber Co. I responsible for "Raw Material" quality and put in place a manual process and reporting system to look at acceptable material lots, timely delivery and prompt customer service that was marginally effective, not scaleable beyond a single site and only supported production materials. Thirty years later not much has changed albeit the introduction of technology that has potentially accelerated the delivery of meaningless and unactionable data ... until now.
Sherry Gordon has written the first comprehensive guide for organizations to develop and implement a Supplier Evaluation and Performance Excellence program (hence the book title)that really works. She's produced a masterful "recipe" for success.
Some of the practical features of the book includes:
- How to structure a Supplier Performance Management project, including roles and responsibilities and senior management support
- A complete project plan for an SPM implementation, including tasks, key decisions and challenges
- A supplier segmentation model specifically for supplier evaluation, including types of performance information to use by supply base segment
- Sources and types of supplier performance information for evaluating both direct and indirect suppliers
- A process for developing supplier performance expectations
- A hierarchy for developing a business measurement model
- How to choose metrics that are meaningful to your organization
- Pros and cons of different evaluation approaches
- Suggested supplier evaluation processes
- How to create a good supplier survey
- How to conduct a supplier site visit
- Specific tios on the "do's and don'ts" of giving supplier performance feedback
- How to create a process for supply risk planning
- How to develop a good supplier certification process
- How to plan and run a successful supplier conference
- How to conduct a successful supplier development process
Ms.Gordon has done an excellent job of providing an interesting and readable, step-by-step analysis of what it takes to properly evaluate suppliers and drive them to perform optimally. She has certainly met her goal of providing a book "to help guide firms in this journey." She starts out by telling us how to sell the Supplier Performance Management initiative and then takes us through every step including what a customer company must do to obtain optimum value from this effort. She makes it very clear that this is a process, not a project or an event. One must understand this going in or be destined to fail. I wish I had this book to read years ago, but in reading it I find it validated what I had to learn through years of working the process. James Tarabori Director of Purchasing- North America Caterpillar Inc.
This book gives you everything you need to know about measuring supplier performance and driving toward excellence! The tools and methods it contains will provide value whether you're just getting started or you've already been at it a while. It's obvious that Sherry has lots of hands-on experience actually implementing this stuff. You won't get a lot of fluff here. Just good, solid instructions! And even though the title doesn't call this out as a "Lean" book, it fits right in with any Lean supplier development program.
Very well written, easy to read, practical and comprehensive survey of the art & science of supplier performance management and supplier assessment. If you are just learning about the topic, wanting to figure out how to drive more productive relationships with suppliers, implementing a new supplier performance management program or enhancing / re-architecting an existing program, this is an excellent resource. The author actually has experience in improving relationships between suppliers and customers and developing tools to automate the necessary processes She is very direct about the tradeoffs you must consider and the pitfalls you will face along the way. As we are in the process of designing and piloting a program, this was a very useful guide for validating our design and getting additional ideas to make it better. Highly recommended!
This book includes everything you'll need to know from a strategic and tactical point of view, that if followed will surely eliminate a majority of supplier issues. The book is easy to understand and provides you with thought provoking questions that you need to consider when developing or improving a supplier performance management program.
The book also provides you with some very useful resources that include: - Presentation slides that demonstrate the value of supplier performance - A scorecard template - A worksheet that helps you determine what you should measure, and - 43 supplier management metrics
Sherry Gordon just made managing suppliers easier!