Business Problem
A company faces challenges in managing its suppliers effectively and efficiently. The existing manual processes
and disparate tools such as ERP and Excel lead to inefficiencies, data inconsistencies, and difficulties in tracking supplier performance
and compliance.
The company realizes the need for a digital supplier management solution to streamline operations and bring transparency into their supplier network.
A comprehensive supplier portfolio management and its segmentation is needed to drive strategic decision-making and maximize value from supplier relationships.
LOGIBLOX Solution
The company decides to leverage a no-code platform to develop a customized supplier management and performance measurement solution. Here is an overview of the solution:
Supplier Portfolio Management:
LOGIBLOX enables the company to create a centralized tool to store and manage suppliers and their supplier lifecycle stage. The solution allows the company to maintain a comprehensive supplier profile for each supplier, including key details such as capabilities, spend, supplier evaluation, category importance, previous engagements, performance metrics. The platform provides a holistic view of the supplier portfolio, allowing the company to evaluate supplier performance, strengths, and areas of improvement.
Supplier Segmentation:
By using their own logic, the company can define segmentation criteria based on factors such as industry expertise, capabilities, geographic location, capacity, pricing, quality, and risk. The platform allows for the creation of customizable segmentation models and rules. Suppliers can be classified into different segments, such as strategic partners, preferred suppliers, and transactional suppliers, based on their fit with specific project requirements and strategic objectives.
Performance Evaluation and Scorecards:
The solution facilitates the tracking and evaluation of supplier performance against predefined key performance indicators (KPIs) and metrics. The no-code platform enables the company to create scorecards and automated workflows for performance assessments, including criteria such as quality, delivery timeliness, responsiveness, innovation, and cost-effectiveness. Supplier performance data is captured, analyzed, and visualized, providing actionable insights for decision-making and continuous improvement.
Supplier Development and Integration:
The supplier management solution includes features to support supplier development and integration initiatives. The solution enables the company to identify opportunities for supplier improvement based on performance data and segmentation analysis. The platform allows for the creation and tracking of supplier development plans, including training programs, performance improvement initiatives, and collaboration opportunities. Supplier integration efforts, such as knowledge sharing, joint innovation projects, and technology adoption, can be facilitated through the platform.
Benefits
With LOGIBLOX, it`s very easy to:
- highly automate data preparation & processing at better costs
- greatly speed up analytics to deliver insights when needed
- use instant insights to make better decisions and optimize processes
Strategic Supplier Management
The solution enables the company to strategically manage its supplier portfolio by segmenting suppliers based on specific criteria and aligning them with project requirements and strategic goals. This facilitates optimal supplier selection, drives cost savings, and improves overall supplier performance.
Data-Driven Decision Making
The solution manages supplier data, performance metrics, and segmentation analytics. The company can generate reports and visualizations to gain insights into supplier performance, identify trends, and make informed decisions about supplier engagement, contract negotiations, and relationship management.
Risk Mitigation & Supplier Development
The solution supports risk assessment and mitigation by providing visibility into supplier performance and capabilities. The company can proactively monitor supplier risks, ensure alignment, and implement contingency and development plans to mitigate potential disruptions..