In today’s Procurement world of increased supply management complexities, it is very important for any supply chain manager to have in-depth knowledge of his suppliers.
Apart from how a supplier is performing on certain criteria, such as quality, cost, delivery, service, etc., it is imperative to have detailed knowledge of a supplier’s financial health, the geographies where the supplier is buying from other organizations buying from the same supplier, and such other factors which can be a potential risk to the supply chain.
Most of the organizations don’t keep a track of such information once the supplier has been on-boarded.
So how can organizations effectively track and manage their supplier performance?
We suggest using the right combination six sigma DMAIC principles with supplier technology.