4 Tips for Using Score Cards to Build Supplier Understanding

May 12, 2011 at 9:39 pm 3 comments

Many of the most painful moments in life spring from unstated expectations. I thought you were going to do something. You thought I was going to do something. Neither ever specifically said what we expected. And suddenly we’re angry and arguing.  It’s easy enough to say that this stems from a lack of communication.  But remembering to drive purposeful communication takes effort.

For supply chain managers and suppliers, score cards can provide an excellent framework for communication about expectations at any time in a relationship. In healthcare, score cards can provide suppliers with a better understanding of a hospital’s expectations by documenting important metrics. From there, the vendor and the hospital can work together to meet and exceed those standards.

Effective score cards aren’t a club for beating suppliers or a one-time event. Effective score cards meet four requirements:

  • Select – Not all vendors need to be scored. Hospitals should focus on vendors that have a high impact on its ability to serve patients or meet accrediting standards.
  • Relevant – Measure what is important.
  • Shared – Unless the information is shared with the vendor, nothing is likely to change.
  • Tracked – Performance needs to be measured over time. The goal is improvement, and that takes time and cooperation on both sides.

Vendor companies that have corporate accounts and partnerships with Vendormate consistently report that they want to know about any ratings or scores their hospital customers are tracking. In fact, Vendormate account managers recently contacted all our hospital accounts on behalf of a national supplier. This supplier wanted to receive score card feedback as another element to help them better understand their customers.

Vendors will take every opportunity to understand their buyers’ requirements and performance assessments. Score cards are a great way to open the dialogue.

Entry filed under: best practices, Know Your Vendor. Tags: .

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3 Comments Add your own

  • 1. Global Logistics  |  September 18, 2011 at 10:19 am

    Good idea of “score cards” , I think this strategy can control overall of supplier performance or may I say supplier/vendor management. Thank for share your valuable idea.

  • 2. third party Logistics  |  September 18, 2011 at 10:23 am

    I love in a part of “Tracked – Performance needs to be measured over time. The goal is improvement, and that takes time and cooperation on both sides.” because this can make suppliers awaken every time and make they have ownership in supply chain.

  • 3. Muda  |  October 22, 2011 at 12:29 am

    Your score cards idea is very fantastic! I love it like I love your blog. Thank for sharing


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