By Annie Eissler
Senior Marketing Consultant, MITS
Scorecards are a great performance measurement tool that can help you improve vendor relations and results. With quantitative measurements in hand (or on-screen!), your team can engage vendors in a meaningful discussion around their key performance metrics, including:
Fill Rate: If you order 10 products are they all shipped in one shipment, or are they sending 8 and letting the rest come in later?
Shipments per Order: Great that they got all 10 of those products in one shipment, but it took 5 shipments to complete the order, one for each product. That’s a lot of labor of extra labor to put those products in the warehouse.
Lead Time: Are lead times short and consistent? Predictable lead times let you plan ahead and minimize inventory while still meeting customer demands. Variable lead times either cause inventory levels to rise, or customer services levels to go down.
Good vendor relations are not just good business. By reducing lead time variability you can free up capital to invest in other areas of your business, such as products with higher velocity or profits, paying off loans, or taking advantage of new business opportunities.
If you are interested in learning more about the kind of vendor scorecards you can get from your TrulinX distribution business management software system through Tribute’s new partnership with MITS, take a look at the Vendor Performance for TrulinX datasheet available on the MITS Distributor Analytics for TrulinX landing page.