Supplier Scorecards Mean Better Services, Stronger Partnerships
GIW strives for continuous improvement of our products and our processes to stay competitive. But a critical part of our ability to innovate and improve comes not from inside the company, but outside. Our suppliers are essential to our success! Recently at our first Supplier Day, we had a chance to celebrate our supplier relationships and open up a new dialog on how we can make those relationships even better.
Managing our supply chain is critical for every single business process that we do. We rely on our suppliers to not only be a source of materials, but for efficient and timely delivery, responsiveness to fluctuations in demand, and collaboration to provide a fair and competitive price.
Craig Wieberdink, our new Director of Integrated Management, understands how important it is to develop stronger supplier relationships — after all, that’s one of his primary roles! But another major focus of his job is improving GIW’s quality of suppliers. “It’s a two-way street,” says Craig. “We have certain expectations and requirements, and we know that to meet those requirements, suppliers need certain things from us.”
To secure stronger supplier relationships while ensuring that GIW is working with the very best partners, the new Supplier Scorecard was rolled out to distinguish suppliers that go above and beyond.
Identifying the best of the best
“Those we designate as preferred suppliers get the benefit of a bigger piece of the pie and we work closely with them to meet our goals,” says Pat Farr, Director of Strategic Sourcing. “In turn, it invites them to give us feedback that will help us be a better company.”
The Scorecard works as a guide to help GIW evaluate how well suppliers meet essential criteria: competitive prices, best delivery, most innovative technology, and adequate stock to improve response time for customers. It also serves as an incentive for preferred suppliers and helps them understand what they can do to earn more business. With contracts as large and valuable as the ones GIW offers, being a best-in-class supplier is definitely something to strive for.
Craig emphasizes that the Scorecard is not the end of the conversation with suppliers, but the beginning. It gives suppliers goals to reach for and offers GIW insight on how we may need to improve our own processes and communication to help suppliers meet these goals. “The Scorecard opens the dialog so we can be a better supply chain all together,” he says.
Suppliers have a great deal to gain from having an excellent Scorecard. “A preferred supplier is the first go-to supplier for our products,” says Isis Ortiz, Purchasing Manager. Isis adds that the Scorecard also serves as a validation of the data in GIW’s new SAP system.
Because there is not an extensive history in SAP to compare against real events, it is difficult to tell how consistent it is with actual data. “Our processes might need to be twisted a little and this is just one method for us to take a close look at our data, measure it manually, and make sure that the information is being input the way it needs to,” she says.
Supplier Day kicks off a new beginning
Luckily, we’ve already had the chance to speak with three of our best suppliers about the Scorecard system and they had some great things to say! These distinguished suppliers are the best of the best — models for our preferred supplier program.
As best-in-class organizations, these companies understand the value of a Scorecard system and having open collaboration within their partnerships. One area the visitors emphasized was the value of not only communication but proactive communication. Getting critical information to them early allows them to respond quickly — and results in happier customers down the line.
“They were all very appreciative of the chance to be part of this program,” says Isis.
From encouraging suppliers to reach for further success to assisting with ongoing SAP implementation, there are a lot of great things to look forward to from the Scorecard system. It just goes to show what GIW has always known to be true: By supporting the growth and prosperity of those around us, we too will continue to grow into a better company than before.
Isis Ortiz, Purchasing Manager
Pat Farr, Director of Strategic Sourcing
Craig Wieberdink, Director of Integrated Management