For Procurement Managers in many companies, measuring supplier performance extends beyond traditional KPIs like cost and delivery times. Cooperation, transparency and innovation are also essential to building productive partnerships between customers and suppliers.
“The solution means greater transparency in our supply chain and better relationships with suppliers themselves.”
That’s the experience of Carsten Christensen, Procurement Manager at Wavin, the leading supplier of plastic pipe systems for the drainage, water and plumbing sectors in Europe.
With a large procurement department encompassing strategic and operational functions, Carsten (pictured right) and his team regularly work with internal colleagues and suppliers from across Europe and in China.
Wavin’s suppliers are viewed as partners in product development and help to achieve solutions that are technically, environmentally and economically suitable. However, gathering data and developing the right reports to feedback to suppliers has been a key challenge for the procurement department.
“We have very good relationships with our suppliers but I feel supplier performance tracking can be a challenge. Although we had systems in place previously tracking supplier KPIs, we felt the data collected could be used much better” explains Carsten.
Carsten and his team have implemented a number of solutions to get the most out of their supplier performance data. Since 2013, Wavin have been using LeanLinking, the cloud-based supplier relationship management solution, to gather feedback and share performance data to enhance their relationship with key suppliers.
“We were the first company to sign-up with LeanLinking because the value was clearly recognisable. LeanLinking is an easy system to use. It’s intuitive and straightforward to manage. Rolling it out to stakeholders in supply chain management, particularly the operational side, has been very simple to do.”
And suppliers are getting value from the solution as well. Since starting with LeanLinking, Wavin have shared data with their main suppliers, helping them to understand performance expectations and how to work better with the company.
“When everyone in the operational part of procurement uses the system at full-scale for reviews and sharing information, that’s when the benefits really present themselves,” says Carsten. “The solution means greater transparency in our supply chain and better relationships with suppliers themselves.”
*Photo courtesy of Wavin.