Vendor Compliance
Many organizations have attempted to build or exert control over their supply chains and ended up stumbling - often because they do not effectively manage their suppliers and delivery infrastructure. The results – higher costs, missed customer commitments and sometimes poor product quality. Our decades of experience in this area with organizations like Nike, Qwest and the US Air Force can help you establish excellence in supply chain management through the following:
Metrics
We have all heard that capturing and using metrics are important. In fact, the core components of a relationship with a supplier or service provider can be distilled into a series of measurable criteria. We will work with you to define what needs to be measured, capture the current level of performance, set a realistic targeted level of performance, and then institute ongoing performance measurement and remediation processes. And by the way, we are great at helping you determine who is accountable.
Scorecards, Business Reviews and Allocations
Once metrics are captured, they must be integrated into a process that enables productive supplier dialogue with consequences for levels of performance. Tectus helps you establish a concise scorecard based on agreed upon metrics, and a formal process for reviewing vendor performance. Further, we will help you in establishing (where possible) a process for linking vendor performance to future business allocations.
Contracts with Teeth
Writing or modifying contracts with suppliers so that they accurately reflect the business relationship while still protecting your interests is critical. We can help with this process and ensure that there is language specifying appropriate consequences if your partners are not meeting their commitments. We can even provide legal support for contract reviews if needed. And just so you know, we have negotiated contracts in the hundreds of millions that created up to 40% in bottom line savings.