Ways to measure supplier performance: supplier development programs and supplier scorecards are an enormous asset in helping buyers rate the effectiveness of their supplier network.(evaluating suppliers)

Purchasing, March, 2005 by Kay, Emily

Kennametal Inc. prides itself on quality products, competitive prices, and on-time delivery. So when a European supplier missed a shipment by weeks and customers bought materials elsewhere, the metalworking manufacturer's procurement chief took action. Jim Cebula, director of Kennametal's global purchasing and travel, negotiated a consigned inventory contract with the supplier, which, within four months, was able to stock enough products to deliver them on time again.

Thanks to its supplier remedial efforts, Kennametal also recovered the business it had lost due to the provider's poor execution "Since we're in a competitive market, it's very easy for our customers to call our competitor when we don't have inventory available," says Cebula, with $2...

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