The start of the new year brings many product introductions in the security industry as vendors get their wares ready for the upcoming 2018 show season. Technology is at the heart of electronic security, but good relationships are vital when it comes to depending on the people behind the products you choose to buy.
Suppliers and vendors play a key role in your company’s success. Measuring and tracking vendor performance can improve your business’s operations and profits. Security systems end users view suppliers and vendors as partners in helping to protect their organization. For many organizations, it is that time of the year to revisit supplier performance management to make sure that your current partnerships are mutually beneficial.
Even if your company does have the latest in analytics, the technology is great, but it is always a good idea not to overlook the many different methods of measuring vendor performance, including evaluation forms and surveys, along with software applications. Some combination of a range of metrics can aid you in effectively managing suppliers to make sure you are getting the highest levels of support and service available.
To effectively rate your suppliers and vendors, track their performance, and ultimately increase your company’s overall productivity, here are some items to put on a Vendor Performance Report Card:
Does the supplier have quality management and a set of procedures in place that its people are expected to follow?
How many corrective actions were issued a supplier or vendor, how many products did you have to scrap or return because the supplier or vendor failed to meet specifications, or how many complaints did you receive about a bad part from a vendor?
How easy is it to maintain a good relationship? How quickly did the vendor respond to requests for quotes? How well does the vendor move from understanding the application to knowing exactly what to do to provide the best solution?
Scheduling and Delivery
What percentage of the ordered quantity of products was actually received? Track the number of components that were dead on arrival and the supplier’s on-time delivery track record.
Paying and Price
How does the vendor rank as far as getting better prices or better terms? Determine what your company has been buying, how much it has been buying, and what that impact has on the price you are negotiating today and in the future.
Follow-Up and Other Intangibles
Were all obligations upheld? Was it easy to contact the vendor? Did the vendor provide the best quality of service? What certifications and training did they offer?
Combine multiple suppliers and vendors of similar products into one classification for comparison to determine where a vendor excels or is falling short in specific performance criteria. The relationship with your supplier is a business partnership. Your goal is to understand what a vendor brings to your organization. A bad supplier that provides mediocre or poor products and services can cause problems within an organization while a successful vendor relationship brings advantages.