Before a system of measurement is unleashed, it must be thoroughly tested. When testing, think like your best and worst employee. Think like a cheater.
- A supplier scorecard is a tool that is often used to evaluate potential suppliers. A supplier scorecard can be a good idea because it forces a company to determine what are the important criteria in choosing a supplier. Why is developing a supplier scorecard important? Well, it helps the company stay on target. Rather than choosing a supplier that has a great salesperson, but might only do well in a few categories, the supplier scorecard can remind managers that they are looking for a more complete sales package.
The supplier scorecard might even motivate the purchasing manager to ask a diversified set of questions. A supplier scorecard is also a good opportunity for communication before the sales pitch. Good salespeople don't want to waste your time. They want to sell you the right product. They want to make you happy so you'll buy from them again in the future. If your company provides the salesperson with the information contained on the supplier scorecard before the sales pitch, the salesperson will be motivated to get to the point, stay on topic, and also to develop a sales package that best fits your needs.
It will also inform them of which parts of their proposal will be weighted more heavily. The supplier scorecard also helps you after the sales pitch. Once all suppliers have presented their sales packages, your organization can go about choosing the winner of the contract. You've made an informed decision based on the criteria important to you. That said, the other companies will need to be informed that they did not win the bid.
And, very likely, their first question to you will be, "Why didn't we get the sale?" Using your supplier scorecard, you'll be able to outline those areas where they scored well. You'll also be able to point out where they scored poorly. When the salesperson goes back to their manager, the salesperson can communicate how this supplier will need to improve future bids. Think about what the supplier scorecard just did. It helped you choose the best supplier based on your needs and desires.
But, the scorecard also helped guide the competing suppliers on how to improve. You're potentially improving your entire supplier base. You just helped your supplier and their competitors understand what they will need to do in order to win your business in the future. Supplier scorecards are just one example of a system of metrics that can be used as both a tool of motivation and communication.
Report cards, employee evaluation grids, ranking reports-- these are helpful tools that can help you get organized, motivate others to improve, and then communicate valuable feedback for the future.
- Metrics and human behavior
- Common corporate errors in measuring
- Developing a good metric
- Using the performance measurement tune-up
- Avoiding redundancy
- Using dashboards, infographics, and other data visualization tools