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Supplier Management
KPIs
Description | Source | How to calculate | How to use it |
---|---|---|---|
Supplier Flexibility | Supplier assessments, performance reports | Supplier's ability to meet changing requirements | Assess the adaptability of suppliers to changing business needs |
Audit Compliance Rate | Audit reports, compliance checks | Percentage of suppliers that pass audits based on compliance and standards | Ensure suppliers adhere to legal and regulatory requirements |
Supplier Relationship Longevity | Supplier contracts, relationship records | Average duration of relationships with suppliers | Measure the stability and sustainability of supplier relationships |
Supplier Quality Rating | Quality control reports, customer surveys | Quality ratings based on defect rates and customer feedback | Monitor and ensure the quality of products and services provided by suppliers |
Return on Investment (ROI) from Suppliers | Financial analysis, ROI calculations | Net benefits received divided by the total cost associated with the supplier | Evaluate the financial returns on the engagements with suppliers |
Supplier Integration with Business Processes | IT systems reviews, process audits | Degree of integration of supplier systems with business processes | Assess how seamlessly suppliers' systems and processes integrate with those of the organization |
Percentage of Sustainable Suppliers | Sustainability assessments, reports | Percentage of suppliers meeting sustainability criteria | Promote environmental responsibility by measuring suppliers' adherence to sustainability standards |
Supplier Exit Strategy Effectiveness | Exit strategy reviews, feedback forms | Effectiveness rating of strategies for transitioning away from suppliers | Plan and evaluate the effectiveness of exit strategies for minimizing disruptions |
Supplier Development Programs Success Rate | Development program reports | Success rate of programs aimed at improving supplier performance | Measure the effectiveness of initiatives designed to enhance supplier capabilities |
Percentage of Suppliers Under Improvement Plans | Performance trackers, review meetings | Percentage of suppliers currently undergoing performance improvement plans | Manage suppliers needing improvement to ensure service delivery standards are met |
Supplier Performance Score | Supplier scorecards, performance reviews | Based on a composite index of service quality, delivery time, and response to issues | Evaluate and monitor overall supplier performance to ensure alignment with business objectives |
Compliance with SLAs | Contract management systems, SLA reports | Percentage of service level agreements met | Assess the reliability of suppliers in meeting contractual obligations |
Supplier Risk Level | Risk assessments, financial reports | Risk rating based on financial health, dependency, and strategic importance | Manage and mitigate risks associated with suppliers |
Cost Efficiency | Financial reports, budgets | Comparison of actual costs to budgeted amounts for supplier services | Monitor and control the cost-effectiveness of suppliers |
On-time Delivery Rate | Delivery reports, performance trackers | Percentage of deliveries that meet agreed timelines | Measure the punctuality of suppliers in delivering goods and services |
Supplier Innovation Contribution | Supplier meetings, innovation reports | Number of innovative solutions provided by suppliers | Evaluate the contribution of suppliers to improving products and services through innovation |
Number of Supplier Disputes | Dispute logs, legal reports | Total number of disputes with suppliers over a period | Monitor and address issues in supplier relationships |
Resolution Time for Supplier Issues | Issue logs, performance reviews | Average time taken to resolve issues with suppliers | Assess the efficiency of problem-solving processes with suppliers |
Supplier Collaboration Effectiveness | Project reviews, feedback forms | Effectiveness rating of joint projects and initiatives | Evaluate how well the organization and its suppliers work together on shared goals |
Percentage of Critical Suppliers | Supplier evaluations, strategy documents | Percentage of suppliers categorized as critical | Identify and manage the dependencies on key suppliers |
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