two different forum post i need replies for both of them at least a 100 words for each reply
1.Hello,
From this week’s reading and the case study it is apparent that buyers do not have a steady grasp on the moist efficient ways to evaluate a supplier. One of the reasons that it is hard to evaluate a supplier is the lack of computer programming to take all the big data about suppliers and putting it into a readable evaluation. The use of manually entering the data comes with some bias and judgement. The accuracy of this data entry is called into question because the individuals inputting the evaluation data’s work credit is on the line and can be overwhelmed by the extra work that is being added to their normal workload.
The first characteristic of an effective supplier measurement system that I would implement into an organization would be to use the internal customers to evaluate supplier performance through an online portal that sends the information directly to the measurement system. The main two reasons why I would use these characteristics is there is no better way to measure performance than to get feedback from the direct source. This characteristic will also get rid of the issue of someone having to take data and manually input it into a metrics. The next characteristic would be the supplier’s performance reports include the total cost measurement instead of the price measure. This allows for a true picture of the cost of every unit coming from the supplier and is a truly comparable metric. The next characteristic would be the supplier cost, quality, and deliver are updated in real time. By allowing the supplier to see in real time where they stand after every delivery would allow the supplier to see what areas need improvement. Seeing how the suppliers react to right the discrepancies and a judgement can be made on how they are willing to make things correct.
The value of the total landed cost model comes from all the data that the model uses to calculate the total cost of a supplier’s goods. With this model it gives the true picture of the supplier. Unlike the supplier performance index model, the total landed cost model factors in the variable into the model and omits the bias of suppliers that have a lower value of deliveries compared to other suppliers in the discussion. The model incorporates at least 7 of the 13 characteristics needed for an effective supplier measurement system. If the organization includes an electronical copy of the model than the model would incorporate more characteristics.
Frank
2. Good evening class,
Suppliers have the ability to view their performance online with comparisons against other suppliers.
Being a supplier is a competitive market, if the supplier is not meeting or exceeding the standards of their competitors they are going to be left behind. This measure of performance is my number one priority when rating a supplier because if they are outdated in their practices or their processes then it can create poor communication which in turn, leads to poor service. Suppliers need to stay competitive and if they are not being compared to their suppliers there is no standard for them to meet or exceed.
The measurement system is regularly compared against best-practice companies.
Measuring a suppliers system against a top rated company is my second priority. The reason for this is because it gives the suppliers a goal to strive for. It is similar to the saying: “You’re only as good as those you play against” in that if we compare our suppliers to the worst of practices then that is what is expected of them and that is the bar that they will strive to meet. Set the bar high and the the suppliers will meet the standards. The owner of my company has said before that we sometimes buy low but we manage to our expectations.
Supplier performance, particularly cost, quality, and delivery, is updated in real time as transactions occur.
This measurement is in my opinion third next to the previous two. Reason being is once we set the standards and manage from our expectations we can then focus on the secondary aspects that are cost / quality and delivery. As important as these services are they mean nothing is there is no core value behind what drives these attributes of a supplier. Costs can change, delivery processes can adapt but drive, goals and standards are instilled.
The total landed cost is the sum of money needed from raw materials to manufacturing, shipping and finally delivery. Similarly to my industry in construction a projects total land cost is after all the invoices and change orders have been paid. Then and only then, can we look at the hard cost of the project and subtract it from the companies sell price to the customer to figure the profit. The total land cost does not come once the buyout and contracting tradesmen ends because there are always unknown or unforeseen in the construction world that increase costs. Every project we have has a hidden contingency that is tucked away for the unforeseen and left out portions of the project. Ideally everything is included but often times things get missed unfortunately but with out the contingency then these errors would eat away at profit margins. The contingency is like finding 100$ in the dryer. You didn’t know you had it but when it shows up its a pleasant surprise.
V/r
Patrick