The inefficiencies of collecting supplier performance information manually using spread sheets

Many companies that I talk to about Supplier Performance Management (SPM) will already have some basic processes in place to gather supplier information. Invariably this involves gathering scorecard information in Excel spread sheets. Typically e-mails are sent to suppliers every month, the suppliers complete it and sends it back. It is then an onerous task for an analyst to chase each overdue supplier, then to take all the scorecards and import them into a master spread sheet, convert units of measurement; currencies etc. and then create reports using complex series of macros that represent key performance indicators. It can take several days to gather and collate this information into reports and is extremely frustrating.
Spread sheets are a common basic platform used in every company, most people can use and they provide an excellent starting tool for basic SPM. However they do have some fundamental flaws, listed as follows:

• Spread sheets cannot compare data across multiple users, systems and sites
• There is a high work effort required to maintain spread sheets
• Spread sheets can facilitate the manipulation of data
• Spread sheets lack an audit trail
• Information is unaccountable to management
• Spread sheets have version control issues
• Information is cumbersome to share with fellow users
• Spread sheet scorecards are disconnected and independent of all procurement teams and software.
• Spread sheets do not promote collaboration between users

Over a decade ago Biznet recognised the pain that companies were facing with spread sheets and saw the opportunity to develop a web-based platform that would enable the collection of supplier performance information. For more information contact marketing@biznetsolutions.com

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One response to “The inefficiencies of collecting supplier performance information manually using spread sheets

  1. Great points about spreadsheets. Lack of incorporating enterprise risk management is another shortfall of vendor management programs. I think you will find this blog interesting on the consequences of not including risk management. http://info.logicmanager.com/bid/90349/Poor-Risk-Management-and-Stinky-Diapers

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