Direct Procurement – Manufacturing
Direct procurement costs are a significant component of Cost of Goods Sold (COGS), in excess of 50% of total costs for most manufacturing firms. Thus, optimising costs and processes associated with suppliers can have a substantial impact on profitability and working capital management.
However, the area of supplier relationship management and supplier performance management has been ignored for too long. LeanLinking is now changing that.
LeanLinking combines the power of your stakeholders’ insight into supplier relations with your system data regarding supplier logistics, quality, innovation and responsiveness, thus giving a 360º picture of each supplier’s performance. This improves your business’s Total Cost of Ownership (TCO), materials availability, production efficiency and working capital optimisation.
“One interface that brings together all relevant supplier data and gives us all the facts”
– Heidi Berthelsen, Supply Chain Director, Wavin
Rethink the way you manage your suppliers
Do you measure your suppliers’ 360º performance? If you do not measure, how do you manage? Have you considered the costs and risks in not doing so? Think about it.
Consider the (lack of) time and effort you actually spend on proactively managing your suppliers by first defining supplier performance KPIs and then measuring and following up on the realised supplier performance. Is there room for improvement here?
Our experience shows us that more than 90% of enterprise companies do not have a supplier performance programme implemented to ensure continuous and consistent 360º supplier performance management.
LeanLinking enables your procurement team to proactively monitor and manage your suppliers with automated KPI updates on each supplier and prompt real-time reporting when problems arise. This reduces reaction times significantly whilst similarly reducing risks and total costs.
By linking key supplier metrics to instant stakeholder feedback, we produce a culture where supplier collaboration, fast problem solving, risk mitigation and ongoing improvement become a routine.
We call it the power of real-time transparency.