Implementing Supplier Performance Management Systems. What are the barriers and steps to implementation success?- Part 2

In addition to the business process and system reasons for implementation failure referred to in my last post there are scorecard specific reasons for failure also;

• Internal stakeholders don’t provide input on a timely basis or not at all. This is a key issue in all of the implementations I have been involved with. Supplier participation is often very, very high and near enough guaranteed because their involvement in the Operators SPM program is part of their performance contract. However, Operator employee participation is not as embedded in performance contracts/reviews and oftentimes it is this side of the process that fails. Many scorecards lay out there ‘In Progress’ or ‘Unapproved’ despite the Supplier having participated due to the in-action of Operator users. It can be this inaction that undermines the whole program.

• Scorecard results are not regularly shared with suppliers. Suppliers not having access to data that they add to the system and the reports being run on them is a key difference of the model that this client used versus other clients models. For most clients they allow the supplier to have access to run reports on the system data that they enter. This is often an additional selling point for supplier participation because many smaller supplier firms do not have their own systems to collate, store and report out on their own performance data.

• Suppliers are unclear of customer performance expectations – Suppliers have been asked to participate but they are unaware of the targets their performance is being measured against.

• There is little or no action or follow through that results from the scorecards. (i.e., suppliers do not see recognition, rewards, corrective actions, or disengagement as a result of their performance)

Given the above how can we move this project forward to ensure SPM System Implementation Success?

Sherry Gordon succinctly summarized the six key steps for a successful SPM implementation. Based on my experience I wholeheartedly agree with her assessment:

1. Management buy-in & support
2. Alignment with company and organizational goals and objectives
3. A good process in place
4. Communications: with suppliers and within your organization
5. Actions
6. Measurable results

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