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You need to work with the supplier to include other Metrics that also
help foster improvements in Supplier Relations such as tracking
Days Sales Outstanding (DSO) Value, Over due Invoices (Value and
Number) and also Innovation and Behavioral Metrics that help drive
and reward Innovation.
b) Scorecard Data Availability:
During the planning stage of your Initiative you should always share
draft versions of the relevant proposed scorecard with your suppliers
early on to ensure that they can provide the data that you require at
the right level. The last thing you want is to have metrics where
the data can be supplied by one Supplier but Not another. Or data
that can be supplied by one supplier in only 3 out of their 6 regions
but not all six as some of their regional systems don't have that
data. So have a think about data availability from your suppliers
before you include that question on your scorecard.
4. Scorecard Questions / Data Validation
It is also important that you can validate the data you collect so
don't fall into the trap of asking for, or accepting calculated values,
ie where the supplier puts in a percentage value for say On Time
Delivery example 98%. You need to track the components
(Number of Orders Delivered On Time / Number of Orders
Delivered ), and let the system work out the Percentage itself
otherwise you will struggle to validate the data, and what cant be
validated leads to the inability to question or action the values.
Daryl Fullerton is the Oil & Gas Industry Principal for SRM / SPM at
Actian. He has 16 years experience in Supplier Performance
Management within the Oil & Gas Industry For the last 3 years he has
been responsible for the design and development specification of
Actian's SPM / SRM offerings. To ensure customer success he is also
responsible for providing guidance and consultancy on Scorecard and
KPI development for Actian's Global Oil & Gas Clients. Currently he is
working with a few of the Major Oil & Gas Operators in their migration
to / rollout of Actian's SPM system.
In 2015 Daryl was awarded the honor of "Supply Chain Pros to Know"
in recognition of the leading supply chain professionals and
experts worldwide.