27 January 2023
Many industries face a complex value chain with many different stakeholders. The suppliers play a crucial role in the overall product development and production process, as well as for the digital transformation of the industry. In order to ensure smooth collaboration with their suppliers, companies and their supply chain teams need to implement supplier risk management processes that support them in identifying risks early on and dealing with them effectively.
A supplier scorecard is a useful risk management tool that helps supply chain teams evaluate and track the performance of their suppliers and identify areas where improvement is needed. With today’s multiple data systems and big data analytic tools, the scorecard can help track supplier’s performance and risks in many more fields of operation than the “traditional” scorecard, which was based mainly on on-time delivery and quality performance scores.
The ability to integrate data from various internal and external systems and present them in one view and a design that makes it easy to use and understand gives both internal teams and suppliers the visibility and traceability they are looking for and will help highlight the areas where there is need risk management and improvement.
The scorecard will contain quality (PPM), delivery (OTD), Predictive (PPA), Geo-Political risks, financial risks, contractual, and other data points from various systems to create a holistic view which the end game of end-to-end PO visibility!
It gives all parties in the supply chain the full visibility needed to make decisions in real-time and in one view.
It’s vital to allow Suppliers and vendors access to the data collected for them via the supplier scorecard, so make sure it's accessible to them so they know how they're performing and where they're falling short. If you don't make this information available, your suppliers won't be able to improve their performance or deliver better products or services in the future and enhance suppliers’ collaboration.
Remember, that suppliers collaboration is key to the digital transformation of any industry and helps achieve end-to-end PO visibility.