Practical example
Measure supplier performance & gain transparency
Our efficient and clearly structured approach enables a lasting improvement in the quality of purchased parts.
Background
The steady increase in the outsourcing of production volumes, coupled with the ongoing proliferation of products driven by increasingly specific customer requirements, is making supply chains ever longer and the management of the supplier network increasingly complex. Caught between the competing priorities of cost, quality, innovation, and flexibility, procurement is increasingly expected to act as a value driver rather than merely a facilitator. In innovative procurement organizations, quality in particular is more than ever the focus of top management. Accordingly, figures, data, and facts are the necessary components for sustainably unlocking potential through the lever of “transparency in the supplier network.”
Specific task
- Establish transparency regarding quality issues at the request of the Executive Board and resolve inherent quality issues with purchased parts
- Establishing transparency regarding quality performance within the supplier network (evaluation methodology, prioritization, and planning)
KBC's Approach
A key requirement for successful procurement is end-to-end transparency regarding supplier performance. We enabled our client to identify supplier issues through the procurement function and, as a result, pinpoint reliable suppliers. To achieve this, we focused our project activities directly at the interface between the supplier network and procurement. We designed and piloted a supplier evaluation framework that was ultimately applied during supplier audits. Furthermore, supplier review meetings were managed and enhanced with new, relevant information and analyses. Finally, the impact of supplier initiatives was assessed for sustainability using a portfolio of quality metrics.
