SIG University Certified Supplier Management Professional (CSMP) program graduate Elyse Benoit captures the 4 key benefits from SPM - cost, quality, reliability/risk, and relationship management and how these 4 areas all drive value to the business.
I am a Third-Party Manager. Often when asked what I do for work, my response is juvenile: “…basically I manage suppliers to their contracts and make sure they are doing what they are supposed to be doing.” At this point in my career, I should know better than to downplay the importance of supplier performance management. In today’s competitive business environment, companies need a solid and effective supply chain to succeed. And a vital component of any successful supply chain is effective supplier performance management.
The Chartered Institute of Procurement & Supply defines supplier performance management as “a business practice which extends supplier evaluation and is used to measure, analyze, and manage a supplier’s performance to cut costs, alleviate risks, and drive continuous improvement.” This essay will outline the four key benefits of effective supplier performance management: improved supplier relationships, cost savings, improved quality, and risk mitigation.
SIG University Certified Supplier Management Professional (CSMP) program graduate Daniel Koumides shares how the governance program, when jointly established and managed, increases the supplier's engagement with the business.
Daniela Koumides, Global Procurement and Third Party Management, Cigna
SIG University Certified Supplier Management Professional (CSMP) program graduate Samantha Peters explains the objectives, strategies, and collaboration necessary to achieve supplier relationship compatibility.
SIG University Certified Supplier Management Professional (CSMP) program graduate Lisa VanBuskirk shows how she connected the dots between legal and procurement and became aware of gaps to show how the two roles working together is so vital.
Before I took this SIG U course, I worked in finance and legal roles for the biotech industry. Much of what I have experienced involves the last few lessons in this course: How to protect our company legally and financially. I have never worked in a company that had a formal governance program from the start. Usually, an internal stakeholder would come to me saying, “We like this vendor. Please get them set up,” and I would make contingencies for the relationship’s failure. After this class, I now understand the importance of being involved even before the contracts are ever written and being involved with choosing each supplier.
I am very used to setting up legalese in master service agreements that cover things like performance metrics and termination clauses. This was a natural part of my day-to-day, which I always thought was enough. However, there was a part of me that thought, “Sure, the legal department understands our terms, but what is being communicated to the supplier project leads so they also understand?” This course helped me understand that, especially after recently terminating a relationship with a critical supplier. It would have been much less work from the beginning if we had a supplier governance program in place to lay out our expectations to all from the beginning to all stakeholders. Being involved with occasional meetings to stay aligned with the process would be very helpful for the continued relationship with each supplier.
Lisa VanBuskirk, Procurement Specialist, Sage Therapeutics
SIG University Certified Supplier Management Professional (CSMP) program graduate Nick Fratto defines why finding the right supplier fit for your organization is so crucial for success.
Nick Fratto, Sales Enablement Specialist, Sourcing Industry Group
SIG University Certified Supplier Management Professional (CSMP) program graduate Megan Moore shares her experience of the direct application of the training material in real life and how important it is to understand your company's governance program.
SIG University Certified Supplier Management Professional (CSMP) program graduate Zach Green discusses solutions for formally documenting a RACI around governance in the current IRA survey and developing training for governance and vendor management.
I will focus on Week two material, specifically Module 7 – Lesson 1 – Internal-Support. An area that requires improvement in our current Vendor Management Program is awareness, roles, and responsibilities. Program awareness is defined as knowing that a Vendor Management program exists and what the roles and responsibilities are for each stakeholder.
This essay aims to offer a solution or solutions to bring Vendor Management to the forefront of stakeholders' minds when they are considering procuring a new supplier and revise our current process to raise a clear understanding by implementing our RACI Matrix in a new way.
The first step is to ensure Executive Sponsorship. This step is critical to our governance program as this shows the rest of the company (Legal & General America, Inc.) that senior leaders are aware of our initiative and support our efforts. Second, executive leadership buy-in will give added weight and authority to the program. Lastly, by obtaining Executive Sponsorship, Vendor Management will align with our corporate objectives.
Once Executive Sponsorship is complete, Vendor Management will establish a RACI Matrix. This process is listed within our Vendor Management policies. However, the approach is located on our company intranet site. Given the location of our course, employees may need help finding this information. My recommendation is to begin incorporating the RACI matrix into our Internal Risk.
Zach Green, Vendor Management Analyst,Legal & General America, Inc.
SIG University Certified Supplier Management Professional (CSMP) program graduate Kaila Flynn shares how to maintain supplier management from a sales perspective and provides a great reminder of how important relationships and the aspects that make relationships successful are in business
Kaila Flynn, Sales Executive, Sourcing Industry Group
SIG University Certified Supplier Management Professional (CSMP) program graduate Andy Peksa shares what he finds as the most important aspects of a supplier relationship and how they may be able to help you in your role.
Andy Peksa, Senior Buyer-Procurement Ops, T. Rowe Price
SIG University Certified Supplier Management Professional (CSMP) program graduate Cathy Rutherford describes how curcial Governance is in a procurement organization and how it can transform your team for the better.
Cathy Rutherford, Director of Procurement, CoStar Group Inc.
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The Importance of Effective Supplier Performance Management
SIG University Certified Supplier Management Professional (CSMP) program graduate Elyse Benoit captures the 4 key benefits from SPM - cost, quality, reliability/risk, and relationship management and how these 4 areas all drive value to the business.
I am a Third-Party Manager. Often when asked what I do for work, my response is juvenile: “…basically I manage suppliers to their contracts and make sure they are doing what they are supposed to be doing.” At this point in my career, I should know better than to downplay the importance of supplier performance management. In today’s competitive business environment, companies need a solid and effective supply chain to succeed. And a vital component of any successful supply chain is effective supplier performance management.
The Chartered Institute of Procurement & Supply defines supplier performance management as “a business practice which extends supplier evaluation and is used to measure, analyze, and manage a supplier’s performance to cut costs, alleviate risks, and drive continuous improvement.” This essay will outline the four key benefits of effective supplier performance management: improved supplier relationships, cost savings, improved quality, and risk mitigation.