In numerous sectors, the performance levels of suppliers and subcontractors is one of the main factors contributing to the poor performance of the supply chain, in terms of customer service, control of working capital requirements and cost of non-quality.

When they are measured, poor levels of performance achieved by suppliers can usually be explained by:

• imbalanced preliminary negotiations (purchase price vs. expected service),
• insufficient contractualization (definition of the performance indicators used, bonus / malus systems, etc.),
• inappropriate tracking of performance (unsuitable measurements, failure to track),
• insufficient levels of collaboration, and/or low-quality procurement processes in the company,
• ignorance of the real constraints facing the suppliers,
• an immature supply chain for suppliers.

We assist our customers in:

• the initial diagnostic of the root causes of the performance of their suppliers and the quantification of their direct or induced impacts (service, costs, cash),
• the (re)definition of the supplier performance control system: scorecard and means of driving performance,
• development and assistance with the implementation of prioritized action plans that are differentiated by supplier segment (challenges for progress, possible levers for negotiation):
  • targeted adaptation of contractualization (KPIs, means of accepting deliveries, bonus/malus, port of stock),
  • adaptation of the procurement processes, improvement of the skills of the suppliers and adaptation of the associated information system,
  • strengthening of collaboration with suppliers:
    • improvement of reciprocal visibility: exchanges of forecasts and plans, supplier S&OP, etc.,
    • adaptation of the means of expressing needs: scheduled forecast plans, flexibility contracts, flows pulled by consumption, etc.,
  • and in certain cases, an increase in the maturity of the supply chain of strategic suppliers, including the supplier improvement initiative.