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Measure reliability in supplier management

 
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suklaranilll



Dołączył: 10 Mar 2024
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PostWysłany: Nie Mar 10, 2024 08:21    Temat postu: Measure reliability in supplier management Odpowiedz z cytatem

Knowing how to measure the reliability of suppliers can be essential when correctly managing inventory differently. In supplier management, the importance of purchasing in a classical way is often highlighted. However, the logistical aspect remains unaddressed. In the following article we will focus on analyzing the logistical aspect of supplier management. This is because its logistical quality is what largely determines the Safety Stock. We refer to its behavior and delivery reliability, among other things. Identify and measure supplier reliability In previous articles, we have seen how an unreliable supplier is more difficult to manage and has greater consequences than demand uncertainty. This is why in this article we will focus on how to identify and measure supplier reliability . A supplier is often judged to be reliable if it “delivers as promised.

Let's take into account in the following example that we have a product "A" in inventory. At a certain point, inventory drops below the set inventory level, so we will have to order more stock. If the delivery time is 3 weeks, we will have to place our order three weeks in advance. Delivery time Now, imagine that we order product “A” from a supplier that appears to be very reliable. Every time we buy, the supplier indicates a delivery time, which C Level Contact List is met when shipping. The problem is that their delivery times may vary. That is, for the previous order he established a deadline of 3 weeks and for today he changed it to 4. The client's problem is that he cannot know when he will have to order the next time since there is no fixed delivery time that is set. know in advance. Although the supplier may be very reliable according to common definitions, it is not so when it comes to its inventory management. Therefore, it is not only essential that a supplier is reliable (delivery at the agreed time), but must also be able to offer fixed delivery times.



Logistics indicators For correct supplier management , we also want to know what their performance is in the logistics field. The most important thing for a supplier is that he does not deliver an order too late. A delivery with insufficient quantities, one could say, is not such a serious problem; it can already be solved by placing a new order sooner. DELIVERY TIME DEVIATION The first logistics indicator is the so-called delivery time deviation. This is nothing more than the difference between the promised delivery time and the actual delivery time.
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