Measuring supplier performance with Samson.

Pre-qualification is just the first step in building a successful partnership with your supply chain.

There are many reasons why you should consider regularly reviewing your suppliers performance, from making sure the supplier is delivering an acceptable level of service to building a partnership both sides will want to protect.

Performance review sheet.

...

Expanding on our popular project performance reviews for construction, we've now created a new performance reporting area for FM service providers and facilities managers.

Being able to review supplier performance using relevant indicators is at the heart of our review process. Samson gives you the flexibility to decide what these will be and how many of them to have.

Referred to as KPIs (Key Performance Indicators) , you get to choose what they are and how many a review sheet should have, although we recommend you keep the number of KPI's used to single figures. You may have many suppliers, who will each receive many reviews, so practicality is an important consideration.

Adding custom KPIs.

...

For an idea on what to measure, look at the service agreements you have in place with your suppliers. Key areas of importance can be classed as CSFs (Critical Success Factors). These are what your KPI's need to relate to so you can see if the service agreement is being realised to a satisfactory level and with regularity.

For example your SLA (Service Level Agreement) may require the supplier to follow all safety standards, so the CSF could be 'attention to safety' with the KPI being 'number of reported safety incidents'. Suppliers who followed all safety procedures and with zero incidents should receive a maximum score, whereas those who paid less attention would be marked down, depending on the number and severity of the incidents.

Samson also provides users with the ability to determine how much a score can contribute to the overall review value. Using our example above, if following the correct safety procedures is critical, a poor showing here could offset a supplier score, even though they performed very well in all other areas but paid poor attention to safety when on site.

Once a review has been performed Samson will indicate if the supplier's overall score is excellent, acceptable or poor. It will also show if the supplier is delivering a constant level of service, has improved or has failed to meet the previous review score. Areas that consistently receive poor marks will be highlighted.

All reviews can be shared with the supplier and used as a base to build a co-operative relationship that benefits both parties.

Reports and performance dashboard.

...

Anyone within your organisation can be granted access to these reports and can also contribute to the scoring process if required.

We know that vendor compliance is a necessary evil but Liaison saves us time, resource and more importantly money to ensure our business remains legal and makes the management of our Vendors simple.

Related Blogs: