Efficient Supply Systems: Supplier Measurement Systems



 
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2.00 hours
Online Self Study
PEX508

ID:1000000091
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About the Course

Measuring and managing suppliers’ performance are critical ingredients for increasing the value-add of suppliers, as well as fundamental requirements for evaluating suppliers for future work. This course explains basic methods for measuring supplier performance, explores the strengths and weaknesses of each method, and provides sample templates for their use.

Course Description

Measurements of suppliers' performance are critical to the selection of the best suppliers and the improvement of suppliers' performance over time. Measuring and managing suppliers' performance are critical ingredients for increasing the value-add of suppliers, as well as fundamental requirements for evaluating suppliers for future work. Measurements also tell the supplier what is valued by the buying organization and, by exclusion, what is not.

Without measurements, it is impossible to tell if something is getting better or worse. Failure to accurately measure and evaluate supplier performance can increase an organization's costs, damage its product quality, and hinder its competitiveness in the marketplace.

Basic methods of evaluating suppliers include benchmarking, categorical, weighted-point, and cost-ratio. This course explains each of these methods, explores their strengths and weaknesses, and provides sample templates for their use.

Learning Objectives

After completing this course, you should be able to:

  • Identify key areas of supplier performance.
  • Describe basic methods of supplier evaluation.
  • Determine metrics and scoring for rating suppliers.
  • Discuss the key steps involved in the implementation of a supplier measurement system.

Agenda

The following topics are included in this course:

  • Supplier Measurement Overview
  • Benchmarking Method
  • Categorical Method
  • Weighted-Point Method
  • Cost-Ratio Method
  • Implementation
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