{"id":25996,"date":"2017-09-10T10:17:19","date_gmt":"2017-09-10T10:17:19","guid":{"rendered":"http:\/\/scmwizard.com\/?p=25996"},"modified":"2021-04-02T14:06:11","modified_gmt":"2021-04-02T14:06:11","slug":"supplier-capability-assessment","status":"publish","type":"post","link":"https:\/\/scmwizard.com\/supplier-capability-assessment\/","title":{"rendered":"Supplier Capability Assessment"},"content":{"rendered":"<p>If you want to measure supplier performance either in pre or post purchase, you have to consider some criteria. You can then give a weighted score during the evaluation period. Here I only list the assessment points during supplier capability measurement.<\/p>\n<h2>Quality capacity assessment<\/h2>\n<ul>\n<li>Mission vision<\/li>\n<li>Investment in R&amp;D<\/li>\n<li>Intellectual property<\/li>\n<li>Suppliers personnel<\/li>\n<li>Manufacturing capability and Technology<\/li>\n<li>Extent of previous experience with similar service<\/li>\n<li>Maintenance interval<\/li>\n<li>Durability.<\/li>\n<\/ul>\n<h2>Assess supplier motivation:<\/h2>\n<ul>\n<li>participation in product design<\/li>\n<li>providing flexibility in specification<\/li>\n<li>arrange special quality content test or required inspection service<\/li>\n<li>engage special staff<\/li>\n<\/ul>\n<h2>capability measurement<\/h2>\n<ul>\n<li>Mkt. Segments serviced by the supplier<\/li>\n<li>Not supplying competitors<\/li>\n<li>Capacity<\/li>\n<li>Subcontracts<\/li>\n<li>Stock limits<\/li>\n<li>Percentage of required item with supplier standard product range<\/li>\n<li>Export experience<\/li>\n<li>Supply horizon<\/li>\n<li>Delivery reliability<\/li>\n<li>Lead time<\/li>\n<li>Order treating system<\/li>\n<li>Assess logistics arrangements<\/li>\n<li>Security of supplier<\/li>\n<li>Technical<\/li>\n<\/ul>\n<h2>Reliability<\/h2>\n<ul>\n<li>Low meantime between failures<\/li>\n<li>Low outrage rate<\/li>\n<li>Duration of service<\/li>\n<li>Lead time delivery<\/li>\n<li>Delivery of the main service<\/li>\n<\/ul>\n<h2>Supply Horizon<\/h2>\n<ul>\n<li>Offer continuity of supply<\/li>\n<li>Financial Stability<\/li>\n<li>Core product of supplier<\/li>\n<li>Sustainable market position<\/li>\n<\/ul>\n<h2>Technical support<\/h2>\n<ul>\n<li>Readiness to train staff on site<\/li>\n<li>Response time to queries<\/li>\n<li>Response time for maintenance &amp; repair.<\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-26004 size-full\" src=\"http:\/\/scmwizard.com\/wp-content\/uploads\/2017\/09\/Screenshot_3.jpg\" alt=\"PERFORMANCE MEASUREMENT\" width=\"561\" height=\"433\" srcset=\"https:\/\/scmwizard.com\/wp-content\/uploads\/2017\/09\/Screenshot_3.jpg 561w, https:\/\/scmwizard.com\/wp-content\/uploads\/2017\/09\/Screenshot_3-300x232.jpg 300w\" sizes=\"(max-width: 561px) 100vw, 561px\" \/><\/p>\n<h2>Performance Measurement and Evaluation<\/h2>\n<h2>Post Purchase<\/h2>\n<p>A purchasing and supply chain performance evaluation system represents a formal, systematic approach to monitor and evaluate purchasing performance.<\/p>\n<h2>Problems with Purchasing Evaluation<\/h2>\n<ul>\n<li>Too Much Data and Wrong Data Measures That Are Short-Term Focused Lack of Detail<\/li>\n<li>The type of errors that are occurring (wrong part picked, damage, shortages,<br \/>\nmissed shipments, and so on)<\/li>\n<li>Which customers are making the quality claims<\/li>\n<li>Which employees are responsible for the quality errors<\/li>\n<li>The total cost of the quality claims against the facility<\/li>\n<li>The part numbers that have quality claims against them<\/li>\n<li>Drive the Wrong Performance Measures of Behavior versus<br \/>\nAccomplishments<\/li>\n<\/ul>\n<h2>Purchasing and Supply Chain Performance Measurement Categories<\/h2>\n<ul>\n<li>Price performance<\/li>\n<li>Cost-effectiveness<\/li>\n<li>Revenue<\/li>\n<li>Quality<\/li>\n<li>Time\/delivery\/responsiveness<\/li>\n<li>Technology or innovation<\/li>\n<li>Physical environment and safety<\/li>\n<li>Asset and integrated supply chain management<\/li>\n<li>Administration and efficiency<\/li>\n<li>Government and social<\/li>\n<li>Internal customer satisfaction<\/li>\n<li>Supplier performance<\/li>\n<li>Strategic performance<\/li>\n<\/ul>\n<h2>Develop Specific Performance Measures Developing a Performance Measurement<br \/>\nand Evaluation System<\/h2>\n<ul>\n<li>Determine Which Performance Categories to Measure<\/li>\n<li>Use of Accurate and Available Data<\/li>\n<li>Creativity<\/li>\n<li>Directly Related to Organizational Objectives<\/li>\n<li>Joint Participation<\/li>\n<li>Dynamic over Time<\/li>\n<li>Non manipulable<\/li>\n<li>Establish Performance Objectives for Each Measure<\/li>\n<li>Historical Data<\/li>\n<li>Internal Comparisons<\/li>\n<li>External Analysis<\/li>\n<li>Finalize System Details<\/li>\n<li>Performance-Reporting Frequency<\/li>\n<li>Education and Training<\/li>\n<li>Using System Output<\/li>\n<li>Implement and Review System Performance and Measures<\/li>\n<\/ul>\n<p>Hope you get the points mentioned above. If you want to add something don&#8217;t hesitate to comment here.<\/p>\n<p>If you are in purchase or procurement department, you should know the supplier capability. So you have some experience based on your work.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If you want to measure supplier performance either in pre or post purchase, you have to consider some criteria. You can then give a weighted<a class=\"moretag\" href=\"https:\/\/scmwizard.com\/supplier-capability-assessment\/\"> [&#8230;]<\/a><\/p>\n","protected":false},"author":1,"featured_media":26003,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[7],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v22.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Supplier Capability Assessment - SCM Wizard<\/title>\n<meta name=\"description\" content=\"If you are in purchase or procurement department, you should know the supplier capability. 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