SIG University Certified Supplier Management Professional (CSMP) program graduate James Hamlin breaks down the knowledge he's gained while building a supplier management program.
Building a supplier management program has
steps from info gathering, supplier segmentation, performance scorecards and finding the right cadence for business reviews. At ATD we're in the process of building this from the ground up. The Certified Supplier Management Professional program at SIG has helped us take the first steps in a long journey by laying out a template the . very implementation isn't the same here's a delicate balance between creating an effective program and layering a program with excess bureaucracy that stall your overall goals. Utilizing the information covered in the course here's how we're going to accomplish that at ATD.
Supplier Management Program Structure
. It explains that value generation, contract compliance and risk mitigation are the three primary functions of governance programs
' Finally risk mitigation will we're prepared for the future and insulate ATD from negative impacts within our business.
Tiering suppliers is key to building the supplier management for your business. This tiering is
how your program will or won't engage with all suppliers within your network its complexity hampers the effectiveness of a more simplified three or four-tier structure. Most businesses won't have many relationships at the shared services or equity partnership level The crucial step here is identifying the suppliers that are key to your business willing to partner as these programs start their rollouts. Consulting firms and industry leaders within supply chain be more in their approach and won't be a fertile ground to plant the first seeds. Suppliers that have recently been awarded business can help you get the early wins and internal buy-in to create positive momentum.
Supplier Segmentation and Scorecarding
This piece is not complete without a thorough supplier segmentation exercise that details
I believe this subject provides the opportunity within course. Detailing key questions and a process to identify or rate each supplier is . While not covered in the coursework there was reference made to Sherry Gordon's book "Supplier Evaluation & Performance Excellence" lays out a specific playbook for supplier segmentation.
These two decisions go hand in hand as a software tool is only as good as those who can use it.
While other online-based tools are in the late game, early on starting with a basic building block has been the best step for us.
This is our playbook for supplier management in 2022. The goal is to obtain the stakeholder buy-in early with these pilot suppliers which will build momentum as we mature and grow.
The Certified Supplier Management Professional program is a five-week course delivered through SIG University’s unique education platform. Visit our website to learn more about the discipline of governance and enroll for the upcoming semester.
James Hamlin is currently a Sourcing Analyst at American Tire Distributors. With over 10 years of experience in sourcing mostly in pricing analytics, James has worked for industry-leading companies like Premier, Inc and Compass Group. He spent over six years working at Premier, Inc a healthcare GPO on strategic categories like physical therapy, computer hardware and software. During his time with Compass Group, he worked for the Foodbuy division helping run analytics for key agreements in dairy foods and bottled water, currently, he’s helped negotiate over $900K in savings over the past year with ATD in categories like MRO supplies, janitorial services, and vehicle fleet leasing. With a background from distribution to healthcare and food, James has cultivated a diverse skill set across many categories with strong analytics skills and experience presenting to senior-level executives during category award meetings.