Executive Summary

• Managing category strategies and key suppliers is a critical capability for preserving and enhancing the benefits of Strategic Sourcing.
• We recognize we need to transition from crisis response and perception based decision making to proactive, fact based supplier management.
• We have developed a Supplier Performance Management (SPM) architecture including supplier segmentation, a consistent scorecard and KPI structure, a lifecycle process for scorecards and KPIs and the requisite detailed processes and automation.
• We have been piloting the processes and tools with a small number of suppliers. Some benefits have been achieved in pilot categories. Additional benefits will be achieved in risk and cost reduction as we roll out SPM.
• The success of the program depends primarily upon the effort of category team members.
• Communication, training and follow-up are necessary to successfully implement SPM.
• There are significant benefits to be achieved, but effort and resources should not be minimized.

Contributors: Wolters Kluwer
Categories: Summit Presentations
SRC Type: Procurement Operations, Sourcing Management, Third Party Management