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Strengthening supplier relationships to deliver better business

Supplier relationship management (SRM) is crucial to ensure an effective and sustainable supply chain. Working alongside our client, the UK’s largest automotive manufacturer, Sysdoc helped to transform their SRM processes through the implementation of a Supplier Scorecard. The Supplier Scorecard encompasses over 20 performance measures providing an objective, consistent and cross functional view of supplier performance. The scorecard has provided a visual representation on how suppliers are performing and has been successfully embedded at supplier sites globally.

Supplier relationship management (SRM) facilitates innovation and enables organisation and their suppliers to agree and prioritise activities that add the most value. Our client recognised the importance of better understanding its global supply base with the ultimate goal of creating more strategic supplier partners.

The driving need for the Supplier Scorecard was to embed a streamlined approach to working with suppliers. With this, greater consistency in how suppliers were engaged and how their performance was being measured would be achieved.

The Supplier Scorecard encompasses over 20 performance measures – both quantitative and qualitative – where suppliers are measured on Quality, Risk, Aftermarket Performance, Cost, Technology and Innovation. The scorecards provide a highly visual representation on how a supplier is performing at each of their manufacturing plants as well a company as a whole. The data collected is trended monthly and is also put into a league table that provides an objective comparison of supplier performance.

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Sysdoc provided change management expertise to help embed the supplier scorecard at our client’s top 20 suppliers. This successfully drove behavioural change across the organisation by transitioning siloed, disparate Supplier Management into a common and cross functional approach. Working with leaders across each function of the organisation Sysdoc was able to deliver behavioural change that resulted in our client having an SRM framework and process that would improve their supply chain performance.

Importantly, the delivery of change management extended to the suppliers themselves, with Sysdoc driving the communication, training and ongoing support. For the scorecard to be an effective SRM tool it was crucial suppliers understood why a new approach was being implemented, what impact it would have and how they should use the scorecard to drive performance.

Ultimately, with a structured engagement approach along with the empirical and trended data of the supplier scorecard, teams across the client-supplier network are building more strategic relationships and creating a platform to drive innovation and excellence within their supply chain.