We will demonstrate ways to create stronger supplier relationships which are based on price and performance. Through the introduction of ‘vendor scorecards’ and tracking performance details, you will be able to track quality, delivery, performance, responsiveness, cost/price variance and more.

What is Vendor Performance Assessment?

Vendor Performance Assessment or Vendor Performance Measurement (VPM) is the method of rating the supplier base using an alphabetical “score” classing method which is based on their respective performance. Once completed suppliers will be classified as A (top performing suppliers) through to D (lowest performing suppliers). Different scores may result in different follow on action from partnering to disengagement.

The ratings will be based on a score card where in various KPIs (Key Performance Indicators) are to be considered. VPM is the foundation of collaborative planning, allowing retailers to strike better, smarter deals with vendors, as well as allowing those retailers to take steps to ensure in-stocks even during highly volatile seasonal and promotional activity.

“Corporate success will increasingly be dictated by how well a company can control its supply base, create continuous performance improvement and identify and mitigate supply bottlenecks and liabilities.”
– Beth Enslow, vice president, enterprise research, Aberdeen Group.

Why Vendor Performance Assessment?

• You cannot manage what you don’t measure. If you don’t manage your suppliers they will manage you
• Organizations generally have the need to provide buying teams with information about sources of supply while facilitating continuous improvement and communication within the supply chain
• Vendor assessment is a vital piece of the supply chain executive’s toolkit but as with any assessment program – the results should help target issues and act as a facilitator in resolving them
• Only pay the measured vendors to avoid:
  
  
  • Poorly written contracts terms & conditions
  • Poor responsiveness
  • Lack of management support

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• A key benefit delivered by VPM software’s collaborative empowerment is the ability to analyze vendor responsiveness and use that analysis to better manage lead times and delivery reliability, reducing inventory levels and stock interest cost
• Minimize risk operations within the supply management chain, maverick spending and ensure effective reporting system
• “ VPM is a business critical area to understand how different vendor products perform“
• Edward Wong, senior vice president, supply chain and systems, Charlotte Russe Holdings, Inc.
• Monitoring and analysis of vendor performance and reliability allows retailers to:
  
  
  • reduce stock levels
  • improve operational, efficiencies & customer satisfaction
  • increase profitability
    (White Paper Optimizing Profits through Vendor Performance Management – RIS)
  
  
  
• Scorecards can be established to set goals and track performance on virtually any metric, as well as to set benchmarks identifying high- and low-performing vendors

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Benefits

• Identify and resolve inefficiencies and performance problems
• Improve collaboration with suppliers and benefit from best practices
• Proactively manage the strategic performance of your supply base
• Identify promptly and track performance trends
• Effectively manage the total cost of ownership of a supplier relationship
• Gain historical performance tracking data to help identify trends
• Have the tools to leverage supplier performance results in future negotiations

Why Tejari?

• Tejari is the leading B2B Marketplace in the region
• Tejari will take the burden of vendor performance assessment
• Our Experts are talented & qualified in conducting vendor performance assessment and are familiar with the different suppliers across multiple industries
• Our Experts will identify new supply sources
• Tejari will provide best practices pertaining to vendor selection, performance management & risk assessment
• Tejari will recommend a strategy to rationalize the current supplier base and put the organization in a better position with a stronger relationship with the organization’s key suppliers
• Tejari will rectify the gaps and implement continuous improvement roadmap across your supply chain

Our Services

• Provide details on how to develop models for effective supplier relationship management
• Demonstrate how to create a viable supplier performance management process
• Create global reporting systems with detailed supplier profiles and an integrated scorecard system
• Identify methods to support corrective action planning and collaborative improvement
• Optimize your supplier base

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