Supplier Performance Essay

727 Words3 Pages
IDIS 614 Supplier Performance
The strategic partnership between a distributor and its supplier is paramount to the success of both companies. Suppliers utilize distributors as an extension of their company to not only warehouse, but to promote and market their product lines across a geographic region. The more reliable a supplier can be to its distributor, the less uncertainty it creates. This leads to better inventory turn and increased profitability. Leadership begins by knowing your partners and assessing their competencies and performance. (Fein)
At our company our purchasing department meets with vendors on an annual basis to review their performance level as it relates to our metrics. Our vendor scorecard is used and is broken
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Vendor Score Card
3M Score Reason
Service Level Number of lines shipped complete 0 54.22/100 = Score of 0 out of 5 54.22
Operations Score Barcodes, ease of breakdown and put up, accuracy of documentation 2 Have barcodes ,but numerous shipping errors Purchasing Score Ease of ordering, PO receipt confirmations, shipping confirmations 4 Very good automation of PO confirmations and shipping info. Consistency of lead time EDI has been an issue getting established (lack of response from 3M IT department)
Service
Return handling, sales resources, drop ship handling 2 RMA process for quality issues is tedious/takes too much time. Drop ship fee and minimums limits flexibiltyMarketing Coop dollars, Rebate opportunities, Trade show support 2 Convoluted rebate process, both year-end and franchise. Total 1.4
Weights Service Level - Points 0 0% - 59.9% Metrics Service Level 40% 1 60%-69.9% GMROII - 7.14 Group Average - 10.95 Operations Score 25% 2 70%-79.9% GM% - 16.46% Group Average - 22.04% GSG Company Goal (2013) 25.5% Purchasing Score 10% 3 80%-89.9% Surplus - $171,661 Service 15% 4 90%-94.9% Marketing 10% 5 95%-100%
Operations
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