3. METRICS
How Do We Measure Partners and Why?
• Cycle Time
• Cost
• Contractor Work Authorization
• Response Rates
• Submission to Interview
• Interview to Hire
• Compliance (BGV, Onboarding, etc)
4. SUPPLIER VERSUS PARTNER
What Really is the Difference?
• Supplier (def): To furnish something that is needed for a particular purpose.
Typically a supplier is:
• Selected through a traditional bidding process
• Provides goods or services in standardized transaction patterns
• Conform to standard terms and conditions.
When the transactions end, the business relationship ends
• Partner (def): Two or more people or businesses that work together. A
business relationship based on:
• Mutual Trust
• Openness
• Shared risk and reward
Fluid, flexible relationships that depend on honesty and integrity to succeed
6. MOVING YOUR SUPPLIERS TO PARTNERS
• Achieve a leadership position against your
competitors
• Shorten time to market
• Gain production efficiency
• Attain mutually beneficial cost reductions
• Find ways to reduce price
• Increase market share and competitive advantage
7. MOVING YOUR SUPPLIERS TO PARTNERS
• Determine your needs in a partner
• Evaluate current vendor list for those that can be partners
• Establish processes that support partner model
• Establish Key Performance Indicators
• Devise an evaluation method
• Maintain good relationships
• Communicate often and openly
• Decide when to issue red flags
• Cut loose weak links
8. RESULTS
•Reduction in Cycle Time
•Reduction in Number of Suppliers
•Reduction in Costs
•Increase in Quality
•Compliance to Process
•Metrics Improved