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

Executive team reviewing supplier management performance and strategic procurement metrics during interim leadership consulting
Executive presenting holistic supplier performance scorecard during meeting – Nextshift Leadership showcasing supplier management and procurement transformation

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
Team celebrating supplier performance improvements with scorecard results – Nextshift Leadership supplier management consulting