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Supplier Measurement - Self Assessment

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  • #16
    Re: Supplier Measurement - Self Assessment

    Originally posted by bernievn View Post
    The intensive effort involved in Supplier Performance Measurement is a major hurdle for some procurement professionals. As a result they sometimes give up on the leading practice purely because they do not have the resourses / time to do this.

    It seems that quite a few companies are now instructing suppliers to measure themselves and then report back to the buying company on this.

    Is this a workable solution? What if the supplier is dishonest about their performance?
    In South Africa ? Not at this stage
    Jacques Fourie
    Director Operations
    Wanama Solutions
    +27836450618
    www.wanama.co.za
    jacques.fourie@wanama.co.za

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    • #17
      Re: Supplier Measurement - Self Assessment

      If you make "audit rights" part of your contract, where you are able to on basis determined by your company do spot checks on the supplier generated data... with consequence attached to misreporting, it can be done..
      Is profit made when you buy or when you sell?

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      • #18
        Re: Supplier Measurement - Self Assessment

        I agree with you Bernie it is definately workable with the proper control measures in place as you suggested.
        The problem is that if you have to measure/evaluate supplier performance/ability yourself it will be a hugely resource intensive operation.
        We have had companies like BHP Billiton use our Supplier Management Questionairres with great success.
        But obviously the right controls have to be put in place to prevent dishonesty.
        Izak van der Merwe
        INTENDA (PTY) Ltd.
        www.intenda.co.za

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        • #19
          Re: Supplier Measurement - Self Assessment

          Everyone has got valid points here, but i think it comes down to the point that Bernie made earlier:

          "The intensive effort involved in Supplier Performance Measurement is a major hurdle for some procurement professionals. As a result they sometimes give up on the leading practice purely because they do not have the resourses / time to do this.

          With the correct "tools" for the job it can be done efficiently and effectively and when this is the case organisations realise alot of value.

          Even when you pass things over to the supplier because of resource contraints dont bet on the supplier having a whole lot of resources in place to do the job either. Remeber they are also in business and dont just have extra resources wondering around the place. People always fail to consider that if you pass on your practices to the supplier, you need to evaluate the cost implication of such an approach. Because i can guarantee you that the supplier will pass those costs on to the customer organisation.

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          • #20
            Re: Supplier Measurement - Self Assessment

            .. I see this in the same light as self assessment when it come to staff appraisals. In the timeframe of implementing this (about 8 months) not one of the self assessments reflected true performance and I had to re-assess and actually do some damage control - in some cases had to tell a staff member (who assessed himself as being able to walk on water) that he/she is performing below required levels and should the current level of performance continue we would have a problem

            Do you not think this will be the same with Suppliers? As you will start to manage re-active (to performance issues) in stead of pro-active management.

            After this, seeming long winded reply, I do think that self assessment (supplier measurement) has its place but only as a guideline to the suppliers - to determine if they are on track and in line with expectations. An outside party would still need to objectively measure performance.

            Supplier measurement will always be one of the fields we will actively engage in finding solutions and investigate alternative ways of doing it.
            Jacques Fourie
            Director Operations
            Wanama Solutions
            +27836450618
            www.wanama.co.za
            jacques.fourie@wanama.co.za

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            • #21
              Re: Supplier Measurement - Self Assessment

              Originally posted by Izak View Post
              Our company also has a supplier management module which utilises questionairres to accredit suppliers. This has been working really well although you still depend alot on overall supplier integrity. However we have always recommended that our clients use SEDA ( Welcome to Seda ).
              They will assist both buyers and suppliers in procuring better and more accurate services.
              I have visited your website in trying to view the questionnaire you are utilizing, will you kindly email it to thabangt@sedibeng.gov.za thanks.

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              • #22
                Re: Supplier Measurement - Self Assessment

                I am interested to see how this has developed over the last few years. Has anyone got any feedback to share with us.? I am currently using Ariba Performance Management and am keen to add this to future contracts. I would probably need to do this as a survey or make it part of my regular contract review.
                Appreciate any words of wisdom.
                Rod McColl
                Procurement Contractor to Government
                New Zealand
                www.rodmccoll.com

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