Executive Briefings

Supplier Performance Management More Important than Ever, Especially in Diversified Companies

No enterprise is an island. Negotiating a great contract, conducting successful reverse auctions, and creating a great e-procurement infrastructure are all important, but they will all be for naught if the supplier fails to perform. Never before have companies been so dependent on the performance of their suppliers. We have become so lean, fast, and outsourced that monitoring and responding quickly to deal with and continually improve suppliers' performance has become a key determinant of success or failure. Managing supplier performance across a diversified and divisionalized company presents its own unique challenges. How can you balance the need for a common supplier performance measurement system across the enterprise with the unique needs of each division?

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No enterprise is an island. Negotiating a great contract, conducting successful reverse auctions, and creating a great e-procurement infrastructure are all important, but they will all be for naught if the supplier fails to perform. Never before have companies been so dependent on the performance of their suppliers. We have become so lean, fast, and outsourced that monitoring and responding quickly to deal with and continually improve suppliers' performance has become a key determinant of success or failure. Managing supplier performance across a diversified and divisionalized company presents its own unique challenges. How can you balance the need for a common supplier performance measurement system across the enterprise with the unique needs of each division?

Read Full Article