Supplier KPI
Using VRO, the most efficient way to measure Supplier Performances is to consider 4 indicators:
- Service Rate;
- Promise Compliance Rate;
- VRO incidents;
- Discrepancies.
These indicators have to be recorded on a daily basis based on the analysis of each Pick-Up Order processed. A simple file can be used to consolidate data in order to:
- communicate VRO performances to suppliers;
- organize monthly VRO result reviews with suppliers.
A lack of communication or meeting review with suppliers is the best way to create misunderstandings, conflicts and at the end, the refusal of this method.
On the contrary, a simple monthly review is the best way to fine tune the process timing (for example: faxing or promise hours more convenient for each actor) and smooths the activity, based on the analysis of the VRO KPI.
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