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Supplier Performance Scorecarding and Stratification Modeling – Part 3 of 3

  • 20 February 2014
  • cre8
  • 1 comment
Categories: News

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Supplier performance scorecards and supplier stratification modeling are related concepts, but very different in how they should be used.  A supplier performance scorecard program should be used between an organization and its suppliers as a means of evaluating the performance of the suppliers against mutually agreed upon or accepted criteria.  Supplier stratification should be an internal metric, where an organization takes other criteria (one of which can be the scorecard metric) and combines them to rank its suppliers (traditionally in an ABCD type model).  The information below will help guide anyone wanting to implement either concept in their organization.  Successful implementation of these concepts will have a positive impact on supplier relationships, operational efficiency, and improvement of EBITDA.

Part 1 –  Supplier Performance Scorecarding (SPS)

               Common SPS Criteria

               Weighing Factors

               More Criteria

Part 2 – Supplier Stratification

               Why Stratify your Supplier Base?

               Best Practices Criteria

Part 3 – Conclusion

Conclusion

Scorecarding and stratifying the supply base can result in many powerfully compelling benefits, from ensuring optimal allocation of time and resources (which are already limited and sometimes compromised), to creating opportunities for strategic partnerships.  Implementing these concepts will have a direct impact on your organization’s EBITDA and cost savings, and allow for maximizing of value for the organization as well as its customers.

Follow this series and other previous postings on http://www.ctnd.com/blog/.

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From an Epicor White Paper

About Epicor

Epicor Software Corporation is a global leader delivering business software solutions to the manufacturing, distribution, retail, and service industries. With more than 40 years of experience, Epicor has more than 20,000 customers in over 150 countries. Epicor solutions enable companies to drive increased efficiency and improve profitability. With a history of innovation, industry expertise, and passion for excellence, Epicor inspires customers to build lasting competitive advantage. Epicor provides the single point of accountability that local, regional, and global businesses demand. For more information, visit www.epicor.com.

One response to “Supplier Performance Scorecarding and Stratification Modeling – Part 3 of 3”

  1. Lucinda says:

    Many thanks, he (I assume) also tried me and there was just 08something” that didn’t ring true about the email. Glad this came up before I did anything, always wary of people who want to install plugins on sites!Thanks for this page and warnings…….

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