Most organizations have increased scrutiny over supplier costs and pursue aggressive price negotiations. Unfortunately, the contract bid price is not the total cost of doing business. Far from it, supplier performance directly affects overall production efficiencies, cycle time and customer satisfaction.
It is well understood that each supplier's work has a direct affect on the quality and productivity of production activities that follow. Downstream activity "customers" know first-hand about the problems they encounter; however this data is rarely recorded and the information remains hidden. The fact is, most organizations do not measure individual supplier performance or departmental performance despite the importance it plays on overall organizational performance.
When performance is not measured, aligning supplier performance with organizational priorities is extraordinarily difficult; moreover, it is nearly impossible to reinforce individual supplier accountability, optimize production processes, or minimize total supply chain cost. Lacking performance data, suppliers discount the importance of performance, shifting quality responsibilities and associated costs to their customers. Without supplier performance measures, purchasing departments often award contracts on bid price alone, further discounting the importance of performance to suppliers.
Align supplier priorities with quality, cycle time, and cost reduction
Manage performance of the entire production process of inter-related activities
Identify accountable parties and issues that need to be addressed
Strengthen supplier performance based on objective data
Coach suppliers when intervention is required
Measure on-time, first time quality performance for the individual supplier
Award contracts based on total cost which includes contract price plus added costs of supplier quality and delivery performance.
FTQ360 features network diagrams of the entire production process with a graphical network snapshot highlighting links in the process that need attention.
FTQ360 top-level graphs highlight top performers for recognition and identify bottom performers for corrective action.
FTQ360 detail reports uncover problems and identify causes with supplier-level accountability when suppliers need coaching.
FTQ360 trend reports track improvements over time to monitor the improvement progress of individual suppliers.
FTQ360 not only measures performance as evaluated by incoming inspectors, but also by any number of stakeholders affected by the performance of the supplied product including other suppliers, internal production operations, as well as warranty services, and customer feedback.
