Setting KPIs and benchmarking performance against them should be a routine process for any buyer these days.
It’s common knowledge however that there are still many companies not getting this right; millions are being lost through the bad management, and poor performance of suppliers and service providers.
It’s also known that suppliers and service providers like to work autonomously but that takes trust.
As much as it’s important that buyers fully trust the suppliers they invest in, you would like to think they also have regular visibility of the work they carry out, Right?
You’d be surprised how many buyers operate on trust alone. Fair enough you might say, but what if something goes wrong and you are the person responsible for that contract?
To put this in to context, you’ve probably noticed that you’re outsourcing more of your own work and your supply chain is growing. The same is happening globally with outsourcing growing at record levels worldwide in 2015 in almost every industry.
In the 2nd quarter of 2015 alone over 400 contracts valued at $5 million or more each, were signed.
If things go wrong on a contract at this level not only will the supplier lose their contract, but your company will have lost money and you will probably have lost your job.
No matter the value of a contract the point here is; what if you could have identified and rectified issues sooner? What if you had proper oversight over your suppliers’ activities? Or what if you had data to support and strengthen your trust in the supplier in the first place?
You can’t manage what you don’t measure:
These days you have lots of suppliers and service types to choose from, with competition between them at an all-time high. But successful buying means more than just picking the right supplier; it requires careful management from beginning to end.
Supplier benchmarking therefore plays a pivotal role in this management process to ensure that your suppliers meet the agreed service level agreements within the required timeframe.
Biznet P6 Supplier Performance Management software provides the ideal platform to quickly measure the performance of outsourced contractors, by running real-time reports on KPI’s that have been set against service level agreements.
- P6 SaaS model requires suppliers to engage with their clients by completing customised scorecards based on contract SLAs.
- Real-time KPI reports allow companies to analyse and benchmark and their suppliers against each other on their performance, driving supplier sustainability and year-on-year
- 360 degree Survey functionality allows suppliers to provide feedback regarding their relationship with the client, identifying and rectifying any issues sooner.
Biznet has over 15 years’ experience of working with large multi-national companies to drive best practice in supplier management. Biznet clients gain the best visibility possible on their supplier activities, resulting in improved efficiency and performance, better supplier relationships and cost saving right across their supply chain.
Want to learn more about how Biznet can help your organisation better benchmark your suppliers? Download our free brochure here