Supplier Performance Management
In todays, complex and global supply chains, it is imperative to establish sound guidelines for the suppliers and continuously monitor and control whether those guidelines are interpreted and implemented as intended. We support our global clients to achieve this objective in Indian subcontinent through our presence in all the major manufacturing hubs in India. Wherever required we even deploy our personnel in the selected supplier facility itself where continuous monitoring and recording of supplier performance is our scope of work. In essence, our work follows the DMAIC principles laid out in the Six Sigma Methodology. Please click here to view our Principal Consultant’s Profile.
List of Supplier Verification Services:
Each organisation has its own supplier verification program, some of those activities may be performed by the buyer organisation and some are outsourced to third-party supplier verification entities like us. Hence the scope of our work may include one or more of the following activities.
1. Develop an end-to-end Standard Operating Procedure for your suppliers or for a specific supplier. Supplier SOPs establishes suppliers performance levels and communicates the buyers expectation in unequivocal terms. Supplier SOPs clearly lists out the various processes that need to be performed by the supplier with Key Performance Indicators (KPIs).
2. Supplier Physical Verification. The first step in bringing a supplier onboard is to verify and validate the supplier claims in terms of their physical presence, ownership of the facility, capabilities and capacities in terms of people, processes and systems, partnership with other service providers etc. One of our Research Analysts will physically visit the supplier’s facility and carryout an end-to-end audit as stipulated in Fhyzics’ Supplier Physical Verification Audit Procedure and submit a report with necessary evidences.
3. Material Specification Development: Effective procurement or sourcing starts from a well drafted Material Specification, which is in alignment with SMART goals.
4. Product or Service Quality Control: We help our clients to ensure that the product or service they procure from their supplier is meeting the exacting standards established by them.
5. Mandatory Audits: Your organisation’s policy or internal control or procurement department may mandate periodic supplier audits on weekly, fortnightly, monthly, quarterly, half-yearly or annual basis. Fhyzics’ research analysts will conduct such audits and report them.
6. Supplier Scorecard. Fhyzics develops the supplier scorecard completely customised to requirements, measure the performance and reports periodically to the client.
7. Supplier Issue Root-Cause Analysis: At times, suppliers may come across an issue which adversely affects all the supply chain players including the buyer. Fhyzics team of consultants can help you to identify the root-cause and recommend the right solution to resolve the issue.
8. Buyer-Supplier Partnership Program: A healthy buyer-supplier relationship is a win-win situation for both the buyer and the supplier. Fhyzics helps organisations to develop a buyer-supplier partnership program and run the program to achieve the objectives.
9. Supplier Compliance Audits: A supplier who is compliant with the regulatory bodies, union, state and local authorities, employment laws, environmental laws etc. helps the supply chain to be stable and the buyer will be able to deliver the pre-determined customer service.