Supplier Selection, Evaluation, and Performance Measurement

Most organizations recognize that they cannot perform any better than their suppliers perform, and therefore continuous improvement of supplier performance is critical to the success of any organization. As a result, supplier assessment, selection, and performance measurement are recognized as essential processes requiring high management and professional competencies. This fast-paced seminar provides strategic and practical insights into achieving higher supplier performance.

Participants will increase competencies through various instructional methods, including lectures by an experienced practitioner and consultant, individual and team cases, and group discussions covering the many topics presented in the seminar.

Organizational Impact:
The organization will benefit by:

  • Reduced total cost of Ownership for Purchased materials and services.
  • Improved Supplier Performance.
  • Higher productivity of the entire organization due to not having to deal with so many supplier performance issues.
  • Greater strategic focus of those involved in Supply Management.
  • Improved performance for the organization’s customers


      Personal Impact:
      Attendees will gain by participation in this program as a result of:

      • Increased skill sets in obtaining better supplier performance
      • A greater sense of professionalism
      • Learning strategic approaches to supplier quality improvement
      • Greater ability to lead continuous quality improvement programs
      • Increased recognition by the organization due to improved performance

      Who Should Attend:

      • Contracts, Procurement, Purchasing, and Project personnel,
      • Engineering, Operational, Quality, and Maintenance personnel,
      • And all others who are involved in interfacing with contractors or suppliers in the acquisition of materials, equipment, parts, and services or anyone who wants to improve supplier performance and gain successful outcomes.



      Program Outline

      Session 1:  Achieving Supplier Total Quality

      World-Class organizations understand that their success will be determined by their abilities to select, manage, and continuously improve a complex network of suppliers.
      -- How Are We Doing In Supplier Assessment & Performance Measurement?
      -- Steps In Achieving Total Quality From Suppliers


      Session 2:  What can Measurements Accomplish

      Determining the best approach for supplier performance measurement requires that you first clearly define the objectives of such a system as it relates specifically to your organization.
      -- Objectives of Supplier Performance Measurement
      -- Best Practices In Supplier Qualification
      -- The ABC Analysis
      -- Segmentation Model


      Session 3:  Developing the Qualification Process

      Selecting the best supplier through implementing a world-class supplier qualification procedure is one of the most critical parts of the Supply Management Process.
      -- Developing The Qualification Process
      -- Example of Supplier Qualification Procedure
      -- The Preliminary Supplier Assessment
      -- The Supplier Site Assessment
      -- Who Participates In Supplier Qualification
      -- The Supplier Evaluation Forms
      -- Qualified Supplier List


      Session 4:  Supplier Performance -What to Measure

      In our efforts to increase margins, it is critical to understand the areas in which supplier performance most significantly drives the Total Cost of Ownership.
      -- Best Practices in Supplier Performance System
      -- Best Practices in Supplier Relations
      -- Vital Elements Of Supplier Performance Measurement
      -- Common Performance Categories
      -- Category Weighting
      -- Deciding Which Suppliers To Measure
      -- Quantitative Vs. Qualitative Data


      Session 5:  Collecting, Rating, and Reporting Supplier Performance

      Only about ½ of the organizations measure supplier performance, and many do not do it well.
      -- Collecting the Data
      -- Rating Methods - Basic Points
      -- Developing Performance Standards
      -- Performance Indexing as a KPI


      Session 6:  How to Use Performance Measurements

      In addition to mitigating supply disruption risks and lowering total costs, there are many other benefits from measuring and analyzing supplier performance.
      -- Benefits From Measuring And Analyzing Supplier Performance
      -- Establishing Expectations
      -- Sharing The Information
      -- Holding Supplier Recognition Events
      -- Motivate Supplier With Performance Measurements
      -- Expectations From The Supplier’s Point Of View