Successfully managing a global supplier network
Is managing a global supplier network a tangled dark web? Have you been struggling to reduce costs and improve collaboration with disparate suppliers in very different parts of the globe? Addressing quality issues with your suppliers can be challenging, especially if you are managing disparate businesses throughout the world. One approach to addressing these problems is to incorporate scorecards and a single global enterprise quality management software (EQMS) system to better evaluate your suppliers, improve efficiencies and build stronger relationships.
Supplier performance affects your bottom line
Suppliers help keep your business humming along – except when they don’t. Late shipments, process delays, chargebacks and damaged products make managing a global supplier network extremely challenging in a fast-paced global economy. Keeping track of supplier performance and the quality of their deliverables allows you to quickly identify problems. By monitoring suppliers with a scorecard, you can see which ones are helping you create value, allowing you to build a stronger, more profitable relationship with them while reducing or eliminating suppliers with nonconformance issues from your network.
Industry veteran Sherry Gordon noted that there is a 20 percent increase in accurately measuring supplier performance metrics when businesses take advantage of tools like scorecards. Gordon touched on a particularly sore spot for business when she noted that the supply chain is riddled with waste and inefficiencies. Part of this problem is directly related to the inability to effectively evaluate suppliers with cold, hard facts; another issue is the challenge of understanding complex patterns within those data. Businesses that make data-driven decisions are more profitable than those that do not, so your supplier scorecards are vital tools that help manage important corporate resources. There is a strong positive relationship between supplier performance and the use of scorecards.
The scorecard you use at your business may be somewhat different than that used at other companies. This is because the data you track will be significantly impacted by your company values and needs. For example, you may strongly value suppliers who quickly respond to email requests or are willing to boost manpower for new product launches. The creation of your supplier scorecard will likely involve input from a variety of stakeholders at your company. Since supplier scorecards will involve significant input, you will need an effective approach to managing this information that allows for data transparency and collaboration.
EQMS systems are vital to managing a global supplier network
Creating and managing scorecards for only a few suppliers is challenging, but managing a global supplier network is impossible without an effective EQMS system. More businesses are turning to EQMS systems to effectively address supplier management. A global EQMS system allows you to take advantage of big data while introducing real, actionable insights into your supply chains. Studies have shown that improved collaboration with suppliers is crucial to product success, but increasing collaboration at multiple locations can involve serious challenges. Fortunately, the advantages of a global EQMS system include the sharing of scorecard access at multiple plant locations, the ability to share data (and solutions), and the improvement of collaboration across departments, teams, and suppliers.
While a global EQMS system can provide data-driven insights that help you understand what suppliers are bringing to the table, it can also reveal what you are leaving on it. Sharing and analyzing data allows you to uncover gaps and potential opportunities for your business throughout the supply network. IQS has witnessed a strong uptick in supplier quality when scorecard data is managed effectively with a global EQMS. Being able to share data at multiple plants at different locations throughout the world maximizes your data’s effectiveness and helps create efficiencies.
Winning supplier network management
Effectively managing a global supplier network is challenging, but not impossible with the right tools. Scorecards and a single global EQMS system can provide you with actionable, data-driven insights while improving collaboration with even the most remote supplier. The insights derived from supplier scorecards allow you to boost efficiency and quality within your global supplier network while reducing potential problems. Perhaps most importantly, these insights put you, not your suppliers, in the driver’s seat when it comes to resource management.