Decideware

You will find the following self-assessment from purchasing experts ADR International useful about how to identify and manage your strategic suppliers.

1. Do you have a complete list of all approved suppliers and what you spend with each?

2. Do you have a pareto analysis showing your top 20 suppliers and spend by major commodity?

3. Have you determined the optimum size of your supply base (overall and by commodity)?

4. Are you actively restructuring/reducing your supply base to assure a world class supply base with maximum volume leverage?

5. Do you have supplier recognition programs?

6. Have you dedicated staff who help key suppliers to improve their quality and overall performance?

7. Do you have a program to solicit supplier ideas and recommendations for cost and other improvements?

8. Do you have a systematic program to implement supplier generated improvement suggestions?

9. Do you provide training to suppliers?

10. Do you have joint committees with key suppliers to monitor progress on improvement initiatives and establish ways of sharing the benefits with suppliers?

Author: Peter Evans (ADR International)