Comments on: Supplier Performance Management III: Best Practices http://www.esourcingforum.com/archives/2006/07/30/supplier-performance-management-iii-best-practices/ The source of information and best practices in strategic sourcing. Tue, 10 Jan 2012 21:21:12 +0000 hourly 1 By: Michael Lamoureux http://www.esourcingforum.com/archives/2006/07/30/supplier-performance-management-iii-best-practices/comment-page-1/#comment-7954 Michael Lamoureux Wed, 25 Jul 2007 13:40:49 +0000 http://www.esourcingforum.com/?p=207#comment-7954 Personally, I do not think MBE/WBE should be subject to different KPIs or selection criteria. If you have a MBE/WBE policy, for example, MBE/WBE's should receive 20% of the award, the way I recommend handling it is through strategic sourcing decision optimization. When you feed all of your bid data into the engine, you mark your MBE/WBE suppliers and add a constraint that they need to get (at least) 20%. The optimization engine will then determine, based upon the bids and KPI-based qualitative constraints, the proper award allocation that ensures you meet your initiative but still get the best value for your organization. Supplier Diversity is challenge. Over on Next Level Purchasing, Charles Dominick has a good two-part article that summarizes some of the challenges: http://www.nextlevelpurchasing.com/articles/diverse-suppliers.html http://www.nextlevelpurchasing.com/articles/supplier-diversity-goals.html Personally, I do not think MBE/WBE should be subject to different KPIs or selection criteria. If you have a MBE/WBE policy, for example, MBE/WBE’s should receive 20% of the award, the way I recommend handling it is through strategic sourcing decision optimization. When you feed all of your bid data into the engine, you mark your MBE/WBE suppliers and add a constraint that they need to get (at least) 20%. The optimization engine will then determine, based upon the bids and KPI-based qualitative constraints, the proper award allocation that ensures you meet your initiative but still get the best value for your organization.

Supplier Diversity is challenge. Over on Next Level Purchasing, Charles Dominick has a good two-part article that summarizes some of the challenges:

http://www.nextlevelpurchasing.com/articles/diverse-suppliers.html
http://www.nextlevelpurchasing.com/articles/supplier-diversity-goals.html

]]> By: Dawn Tomei http://www.esourcingforum.com/archives/2006/07/30/supplier-performance-management-iii-best-practices/comment-page-1/#comment-7951 Dawn Tomei Tue, 24 Jul 2007 21:30:19 +0000 http://www.esourcingforum.com/?p=207#comment-7951 A very good article. My client is struggling to break away from old ways and this willl help provide some steps in that direction. Question -- they are local government organization and are concerned that they will not be able to use MBE/WBE suppliers. Are there any different KPIs that would apply apply to this category of suppliers? Would selection criteria be different for them? I think not, else they would have an unfair advantage. please address this topic in the future. thank you. A very good article. My client is struggling to break away from old ways and this willl help provide some steps in that direction.

Question — they are local government organization and are concerned that they will not be able to use MBE/WBE suppliers. Are there any different KPIs that would apply apply to this category of suppliers? Would selection criteria be different for them? I think not, else they would have an unfair advantage.

please address this topic in the future. thank you.

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