PurchTips - Edition # 229

 

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Supplier Management: Make It Strategic

By Charles Dominick, SPSM, SPSM2, SPSM3

Is Your Supplier Management Strategic Or Not?

If you are considering implementing a supplier management process at your organization, you may wonder where to start and what metrics to choose. It's critical to begin strategically because early decisions are the foundation for all future supplier management work.

While emulating another organization's existing supplier scorecard may seem like wonderful shortcut, a more strategic starting point for developing supplier management metrics is learning the top-level strategy of your organization and basing all metrics on that strategy.

Supplier Insurance

Your metrics "should relate to what your company is doing, not what some other company is doing," according to Sherry Gordon, the President of the Value Chain Group, a consulting firm that specializes in supplier management process design and development, and contributor to the Spend Matters blog. "While I think it is really helpful for companies to find out what other companies are measuring on their supplier scorecards... it's only useful up to a point because another company's metrics may not be relevant to you or even readily available in your company."

For example, if your organization's strategic priority is to increase customer satisfaction to support sales growth, it may not be smart to copy the scorecard of an organization that is more focused on cost reduction and stemming losses due to declining revenue. With two different strategic priorities, those organizations' supplier scorecards and metrics should look different.

Though there are many supplier management metrics that your organization can use, you need a method to home in on the metrics your organization should use. Gordon suggests three criteria for deciding on metrics.

"The first one is, is it relevant to your company? The second is... is it measurable?" she says. "And the third thing is, is it actionable?"

Gordon stresses quality of supplier management metrics over quantity. "It's better to have fewer measures that you can really do a good job on and that really mean something to your company rather than trying to fill up a scorecard" with metrics that do not meet the criteria.

(keep reading for a FREE Offer)

Spotlight On Professional Development Opportunities

SPSM Certification

Are you tired of not getting enough opportunities, respect, and money out of your purchasing career? Well, guess what? Nothing will change unless you take action towards becoming a world-class purchasing professional.

You see, today's employers refuse to reward employees for yesterday's skills.They demand that purchasing professionals like you use the most modern skills and achieve unprecedented results. They want you to save more money, achieve better operational performance, and reduce risk.

Is lacking a purchasing certification keeping you from getting the results, opportunities, respect, and money that you want out of your career? Today's employers refuse to reward employees for yesterday's skills. They want you to save more money, achieve better operational performance, and reduce risk. They demand that purchasing professionals like you achieve unprecedented results and without the most modern skills that can be a challenging feat!

So how can you acquire the most modern skills, achieve meaningful results, and convincingly prove your capabilities to today's employers? There is an impressive purchasing certification program that will teach you what you need to accomplish all of this and more. It is the SPSM® Certification, earned by completing the Senior Professional in Supply Management® Program. And you could earn it in less than a year - maybe even much less than a year!

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) (with the option of getting a Study Guide on an iPad) at:

Distinguishing yourself as an achiever in purchasing is key to sustaining a rewarding career, even in these difficult economic times. Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is to take if you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSM® Certification (and perhaps get an iPad) at:

Earning your SPSM® Certification by completing the Senior Professional in Supply Management® Program is the action to take if you want to bring the most modern purchasing practices  into your organization and achieve your career potential. And if you sign up for the Senior Professional in Supply Management® Program on or before May 31, 2008, SPSMSM Certification Program on or before 4/30/2007, you also get these and other bonuses valued at over $700:

  • FREE $30 gift certificate to Amazon.com!
  • FREE CD-ROM with printer-friendly versions of the class materials!
  • FREE Purchasing Performance Measurement spreadsheet template!
  • FREE audio CD about purchasing job security!

To learn how to earn your SPSM® Certification and get these valuable bonuses, visit:

Earning your Senior Professional in Supply Management® (SPSM) Certification is the action to takeif you want to bring the most modern purchasing practices into your organization and achieve your career potential. Learn how to earn your SPSMSM Certification at:

Learn how to earn your SPSM® Certification at:

www.NextLevelPurchasing.com/spsm.html

The Latest Purchasing News!

FREE Offer!

Want to learn more about today's topic? Check out Spend Matters' white paper entitled "Beyond Basic Scorecarding - Supplier Performance and Development Approaches to Drive Competitive Cost and Risk Advantages."

This whitepaper examines why supplier scorecarding and supplier management programs often come up short, tips and tactics for designing and rolling out these programs to achieve lasting returns, and the importance of incorporating both qualitative and quantitative metrics into a scorecard. Registration required and subject to Spend Matters' privacy policy.

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This Starter Kit gives procurement professionals like you a clear idea on what it will take to become certified. You'll get an excellent feel for what you will need to learn and how long it will take.

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Included in your free Starter Kit:

  • Access to two lessons from courses that are part of the Senior Professional in Supply Management® Program
  • A Certification & Training Planning Template
  • Case studies
  • A free Basic Membership in the NLPA

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So, what are you waiting for? Begin your pursuit of a more rewarding procurement career – get your Procurement Training & Certification Starter Kit now by signing up for a free NLPA Basic Membership!

If you are already a member of the NLPA, click here to login and visit the "Starter Kit" tab to access these resources.