Rating, Measuring & Evaluating Supplier Performance
Venue: Kuala Lumpur
|Event Date/Time: Nov 10, 2011||End Date/Time: Nov 11, 2011|
What is the real cost of poor supplier risk management?
According to a recent research project by the Procurement Strategy Council (PSC), procurement organizations pay, on average, an additional 4% to resolve a supply incident stemming from supplier financial distress. If you multiply that by the 60 such incidents the average procurement organization sees each year, then you've got yourself a pretty hefty price tag.
What specifically accounts for that 4% cost increase? According to the PSC's research, those costs come in several forms, including supplier product line or facility closures; reduction in quality standards; and supplier qualification, certification, rating, measurement, and evaluation.
This supplier management program Rating, Measuring, & Evaluating Supplier Performance, can provide you with the tools and methods that will help you rate, measure and evaluate your suppliers' performance effectively, enabling you to mitigate supply chain.