By Kevin R. Maromonte
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Additional info for Corporate Strategic Business Sourcing
For each of the criteria defined by the assessment guidelines, the source’s performance levels need to be verified by reviewing documentation, wherever available, before a rating is assigned by the sourcing company. 1 criteria of production data timeliness, past records issued to the source’s customers for similar products should be reviewed and the timeliness of the submittals quantified. 2. Once all criteria are rated, the averages of the individual ratings are determined and represent the customer service performance measurement for the source.
Basing decisions on whether to use external suppliers or internal departments by comparing just a few performance areas will likely result in the wrong choice being made. An easy method for compiling and comparing the overall performance levels of internal and external sources is by developing Strategic Business Source (SBS) Performance Matrixes. Three individual matrixes are needed: one addressing the quality performance of the sources being considered, one defining the delivery, cost, and customer service levels being provided by the sources, and one quantifying the source’s success in advancing its products.
An easy method for compiling and comparing the overall performance levels of internal and external sources is by developing Strategic Business Source (SBS) Performance Matrixes. Three individual matrixes are needed: one addressing the quality performance of the sources being considered, one defining the delivery, cost, and customer service levels being provided by the sources, and one quantifying the source’s success in advancing its products. There are five major elements to each SBS Performance Matrix.
Corporate Strategic Business Sourcing by Kevin R. Maromonte