Supplier Performance Essay

“The balanced scorecard should translate a business unit’s mission and strategy into tangible objectives and measures. The measures represent a balance between external measures for shareholders and customers and internal measures of critical business processes, innovation and learning and growth. The measures are balance between outcome measures, the results of past efforts, and the measures that drive future performance. And the scorecard is balanced between objective, easily quantified outcome measures and subjective, somewhat judgmental, performance…”

If stock managers and suppliers have a good relationship with one another then they would be happy to work with each other which means stock managers will have a reliable source of supplies and suppliers will have a reliable source of income. If suppliers are happy then they will be more motivated to help the business to achieve success and help the business run effectively.

Open dialogue and communication is very important between the supplier and buyer. Late, missing or inaccurate documents can cause delays of customs clearance and, ultimately, delivery to destination. E-mail and the Internet, and phone calls, can enhance supply-chain efficiency.

Unlike traditional supplier/buyer relationships that had a narrow focus, contemporarily such relationships are becoming more strategic thereby yielding adequate reduction of risk and good technological leverage etc. It should be recognized that this relationship is the most powerful process of consumer satisfaction.

This management tool can help Peyton Approved understand past strategies as well as determine areas that may need improving. The balanced scorecard looks at four different performance factors to running a successful business but for nonfinancial performance measure the following will be looked at. These factors include customer perspective and learning and growth perspective. Each factor contains key performance indicators, which need to be analyzes to make sure Peyton Approved is reaching its goals operationally. Customer perspective includes customer satisfaction ratings, percentage of market share, increase in customers, and repeat customers. Learning and growth perspective includes hours of employee training, employee satisfaction, percentage of employees having online access information about customers, and employee turnover

Introduction- To be competitive, organizations must be both strategic and tactical to the nth degree, must be proactive rather than reactive, and must find a way to measure this easily and accurately. One way to accomplish this is through a Balanced Scorecard approach; a tool often viewed as one of the best tools that helps organizations translate strategy into performance. In general the BSA (Balanced Scorecard Approach) allows for a clear strategic and tactical directions for the organization, retains financial measurements in a summation along with their links to performance, and highlights an important and robust measurement system that links and integrates customers, stakeholders, processes, resources, and performance into single measurement strategy.

The manufacturers, distributors, and suppliers are all streams that contribute to the presence and quality of products. In the business world they function in a business to business market because their products are not directly available to consumers. Understanding the role that each of the links play is integral to viewing the supply chain as a system.

We intend to link our engineering groups and our performance excellence groups with our supplier base as early as we can in the process when building relationships with our suppliers. We need our suppliers to be an extension of ourselves. When dealing with our suppliers was focused on costs quality and schedule. (Bernstein 2005)

Not being able to guarantee a delivery time/date can put a company’s reputation in jeopardy as they may not meet customer expectations.

The Company’s supplier base includes domestic and foreign suppliers, and the Company has a small number of licensed stores in foreign countries. Accordingly, political or financial instability in these foreign countries, changes in U.S. and foreign relationships, laws and regulations affecting the importation and taxation of goods, including duties, tariffs and quotas, or changes in the enforcement of those laws and regulations could adversely impact the Company’s financial condition and results of operations.

quick delivery and response time, continuity of this tendency is not fitting with CRU’s tradition and

Drive Performance improvement in active supply base: If you have an existing relationship with a supplier, performance benchmarking can be a helpful tool for driving supplier relationship management activities. Instead of annual or periodic contractual assessments, review of performance metrics should be continuous process. Such an approach will allow you to stay ahead of supplier issues and facilitate performance benchmarking against their industry peers. Additionally, if you have a “problem” vendor, you can more easily determine where to assign additional resources to help remediate the risks.

Based on the calculation above, both of drilling processes and Inspections process are over 100% of utilization and because the drilling processes is critical for production process and product quality, this fact is considered to be the bottleneck of the company. In addition, the exhibit 2 does not show actual production time which should include reworking time and administrative time and therefore it doesn’t show the precise productivity.

All products received must be documented and signed off by the receiving clerk with a matching purchase order to go along with the bill of lading or packing slip. No items should be received into inventory in the supply department without a corresponding approved purchase order. Supply department should receive a receiving report daily so they can arrange timely payment of invoices to take advantage of purchasing discounts. Nobody else should be allowed to remove a product fro inventory without providing a requisition. These processes should be implemented by the supply manager.

However, Table & Chairs must improve the way of coping with the demands of order in order to meet the customer needs and create an online integrated system connecting company, suppliers and customers in order to have a speedy service as a competitive advantage against their competitors. This new system will also reduce the transportation costs and reduce the time to deliver parts and materials in order to beat the competitors in delivery time.