For companies who source from many different places, it is vital to company operations (especially the supply chain) that suppliers are all performing according to a certain standard. The larger the company is, and the more suppliers there are, the more difficult it can become to ensure top performances by everyone. This is where the use of supplier scorecards can come in very handy. ADT Security Services (a unit of Tyco) seems to have this down to a science. Using a 100-point system, the sourcing team at ADT rates strategic suppliers quarterly on criteria such as quality, delivery and cost, which encourages continuous improvement in supplier performance.
As shown by ADT, global supply chains are complex, inter-connected systems that must be managed by establishing key performance indicators, measuring the process, analyzing the results and developing strategies to continuously improve performance. A technology solution can help you achieve this goal by connecting frontline data with sophisticated reporting tools, giving you the insight needed to make better-informed strategic decisions and improve supply chain performance.
