30+ Ways to Conquer Supplier Risk and Performance Management.

Where to start?

Data Matters

Supplier Risk Areas

  • Look at macro indexes within various fields, tied to social, environmental and financial impacts
  • Find out the risk on a country level
  • Ability to recover from disaster: financial or natural (Evaluate the infrastructure)
  • HSEQ (Health, Safety, Environment, and Quality): Working Conditions
  • Labor and Worker Rights: Worker Involvement, Rights of Freedom, Precarious Employment, Bonded Labor, Working Hours
  • Child Rights and Child Labor
  • Business Ethics and Anticorruption
  • Impact upon Local Communities
  • Waste: Energy, Water
  • Emissions: GHG, CO2, Air & Water Pollution
  • Credit Score
  • Liquidity
  • Profitability
  • Probability of Default
  • Credit Limit
  • ISO 9001: Quality Management Certification
  • ISO 14001: Environmental Management Certification
  • OHSAS 18001: Occupational Health and Safety Management Certification

Supplier Performance Areas

  • PPM — Parts Per Million
  • Complaints — Issued by your team or customers as a result of a supplier’s quality
  • OTD — On-Time Delivery
  • Lead Time — Is it improving, getting worse, or just staying the same??
  • Delivering Upon Agreement Terms
  • ASN Accuracy — Advanced Shipping Notice (logisticsbureau.com 2016)
  • Quantity Ordered vs. Received — Are you getting what you agreed upon?
  • Price point — How competitive is the cost?
  • Market — What’s the market standard and what’s the supplier’s market presence?
  • Value-added vs. Cost of collaboration
  • Cruciality of products and service to your own bottom line
  • Ability to comply with governance structure and standards
  • Collaborativeness throughout the agreement
  • Suppliers’ focus on creating shared value/value-added
  • Customer Service (Overall experience as a customer)
  • Overall Competency
  • Specialty or Niched offerings
  • Innovation in product offerings during the duration of the relationship
  • Development projects
  • Technological Capability and Capacity

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