Case Study:
Supplier Management
Initial Situation
- Supplier performance was previously evaluated only selectively and subjectively
- High strategic dependence on key suppliers
- No standardized approach to assess collaboration, delivery performance, or support quality
- Lack of comparability across functions
- Need for transparency to drive improvements, contract strategies and escalation paths
Actions & Approach
Implementation of a Holistic Supplier Performance Scorecard
1. Scoring Structure
Corporate
- Bonuses, margin trends, financial contributions
- Pricing behavior
Technical Marketing
- Support with new product introduction
- Technical tools, FAE engagement, promotions
Sales
- Supplier data accessibility
- Price quote quality
- Supplier systems handling
Procurement
- Contract negotiation
- Inventory support
- On time delivery performance
- Price list management
2. Methodology
- 20+ criteria scored on a 10 point scale
- Weighting based on relevance
- Cross-functional evaluation (Procurement, Sales, FAE, Logistics)
- Scalable
- Reviewed annually
Results & Actions (Example Supplier)
Scorecard Results
- Overall Score: ~80% → Rank 3
- Strengths:
- Contract negotiation
- On-Time Delivery
- Technical support/tools
- Responsiveness
- Areas for improvement:
- Quote quality
- Forecast accuracy
- Confirmation date handling
- System handling & Extranet use
Actions
- Defined targets for quote processes & extranet communication
- Agreed escalation matrix and response times
- Boosted support on new product introductions and promotion of technical innovation
