Emptoris Supplier Performance Management

May 1
08:43

2007

jack doren

jack doren

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The role of suppliers as a component of a company's competitive advantage is increasingly on the rise, and companies stand to realize many benefits from assessing and developing their supply base.

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Collaborate with Suppliers & Improve PerformanceThese benefits range from measurable improvements in basic performance metrics (e.g.,Emptoris Supplier Performance Management Articles on-time delivery, quality, and cost) to deeper alignment of business practices. This in turn better enables companies to uncover and remove hidden cost drivers from the supply chain, increase competitive advantage by reducing order cycle time and inventory, and gain insight on how to best leverage their supply base. Moreover, factoring supplier performance into sourcing decisions can lead to lower total costs, improved business performance, and stronger supplier relationships.

While most enterprises view vendor performance as critical, only half have formal supplier management programs in place. Some companies have patched together Excel-based systems to track performance but find it is onerous to manage. Others have invested in armies of assessors who systematically survey key suppliers; this approach, however, is neither scalable nor cost efficient. And yet others too often rely on only basic external measures of supplier performance. Without insight into the performance being delivered to their company, they have little chance of affecting sustainable performance gains.

Emptoris Supplier Performance Management overcomes these challenges and enables efficient evaluation and tracking of supplier performance through a central repository of key performance indicators and scorecards and a robust assessment capability that identifies root cause drivers of a suppliers' performance.

Why Emptoris Supplier Performance Management?

Develop the Optimal Supply Base.

Supplier scorecards are tightly integrated into the sourcing process to ensure buyers can easily factor supplier performance into purchase decisions. Buyers obtain a comprehensive understanding of the costs of doing business with each supplier and a holistic view of supplier performance. This ensures suppliers live up to contractual terms while providing them with business incentives to continually improve.

Collaborate with Suppliers to Root Out Performance Issues.

Emptoris helps supplier management and quality organizations scale their supplier assessment processes. Leveraging industry standard best practice methodologies, it utilizes web-enabled, patent-pending measurement technology to produce quick and accurate results. The outcome is performance scores and actionable recommendations for continuous supplier improvement that can impact the customer's own quality, cost, and responsiveness.

Improve Efficiency of Supply Management Processes.

Emptoris automates the collection, analysis, and dissemination of supplier performance metrics. It ties the setting of key performance metrics at the start of the supplier relationship with processes for monitoring and communicating supplier performance delivery. Key performance indicators (KPIs) track specific metrics of performance. Supplier scorecards roll-up KPIs to provide a holistic view of supplier performance.