Developing Supplier Evaluation and Performance Measurement System
Tuononen, Sille (2023)
2023
All rights reserved. This publication is copyrighted. You may download, display and print it for Your own personal use. Commercial use is prohibited.
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2023052815057
https://urn.fi/URN:NBN:fi:amk-2023052815057
Tiivistelmä
Objective of this thesis was to establish common practices for supplier evaluation and performance measurement for the case company. The aim was to identify relevant criteria and tools that could be used to recognize the best possible suppliers. Another objective of this study was to determine the most appropriate supplier performance measurement approach and tools and develop a supplier performance measurement system that would be suitable for the case company.
Data for this study was collected in three rounds using qualitative research methods such as a survey and workshops. The survey enabled to identify the criteria that the case company’s category managers, who are the most involved with suppliers, find relevant when evaluating potential suppliers, as well as when measuring the current suppliers’ performance. The survey also revealed that there were some key suppliers at the case company’s supply base who were identified as the poorest performing suppliers. The theoretical framework focused on the topics related to the supplier evaluation and performance measurement. It was applied to build a proposal, which was presented at the proposal workshop to COO and category managers. Feedback with improvement suggestions to the initial proposal was collected through a stakeholder survey.
As a result of this thesis, two tools were developed for the case company: a supplier evaluation selection tool together with tendering documents and guidelines, and the supplier performance measurement system. The established SPM system enables the case company to evaluate its suppliers’ performance in terms of the most critical factors, detect bottlenecks, take preventive actions, and improve the company's overall performance. SPM system was pilot-tested on two suppliers and should be re-evaluated after six months of field-testing.
Data for this study was collected in three rounds using qualitative research methods such as a survey and workshops. The survey enabled to identify the criteria that the case company’s category managers, who are the most involved with suppliers, find relevant when evaluating potential suppliers, as well as when measuring the current suppliers’ performance. The survey also revealed that there were some key suppliers at the case company’s supply base who were identified as the poorest performing suppliers. The theoretical framework focused on the topics related to the supplier evaluation and performance measurement. It was applied to build a proposal, which was presented at the proposal workshop to COO and category managers. Feedback with improvement suggestions to the initial proposal was collected through a stakeholder survey.
As a result of this thesis, two tools were developed for the case company: a supplier evaluation selection tool together with tendering documents and guidelines, and the supplier performance measurement system. The established SPM system enables the case company to evaluate its suppliers’ performance in terms of the most critical factors, detect bottlenecks, take preventive actions, and improve the company's overall performance. SPM system was pilot-tested on two suppliers and should be re-evaluated after six months of field-testing.