Purchasing

Mary Walker

Pop Quiz on reverse scorecarding
August 22, 2007

“A man who does not read good books has no advantage over the man who can’t read them.” Mark Twain

I still like paper. I like my printed copy of Purchasing so I can read sitting in bed, riding in the car, waiting on a plane, or just anywhere you have a few minutes to spend reading. 

You have to see the printed copy of Purchasing's August 16, 2007 issue to appreciate the cover. “Pop Quiz – How would your suppliers grade you? Find out with reverse scorecarding. The A, B, and C’s and the look on the boy's face, shows us we have all been there. We have all waited for the results of a pop quiz.

Management might not like all they would hear from some of their suppliers. As buyers we sometimes get a little irate when a shipment is late, damaged, or the supplier can’t even find the order. 

Many companies now state: “This call is being monitored in order for us to provide better service to our customers.” Some companies even offer a survey you can take after your conversation to grade the person you talked to. We must remember we are also being recorded. Is it not sad if we have to be recorded to be nice? 

We all know the suppliers we handle that will respond. We also know the ones that we have to call two to three times to get information. Which category would you fall into? The article states “Being in 'good standing' as a customer will keep a firm at the top of the list.” This would apply to the whole team that deals with the company. One bad apple can destroy the pie.

I have sat in meetings many years ago where the purchasing manager was dictating to the supplier. How many times did I hear him say “If you want our business you will have to___.” If we were a major customer, we used that to our advantage.

The article shows the change in the way buyers and procurement executives do business today. We work more on a win-win basis. We strive on having a good working relationship with the supplier. The reverse scorecard would be an opportunity to see where we as the buyer would need to improve but also offers us the opportunity to let the supplier know what we need and expect. It should be a benefit for improvement on both sides of the fence.

One of the highlights in the article is the sidebar called:  "What reverse scorecarding means to buyers!"

• Gives suppliers a chance to voice opinions on your weaknesses as a customer
• Honest supplier feedback lets procurement make improvements that help suppliers help you
• Builds a stronger relationship with most critical suppliers – which might mean getting the suppliers best products or receiving parts during allocation

Ask a salesperson, they know all about their customers grading their performance. Their performance is not just based on how much they sell; it is about how they are taking care of their customers. Perhaps we need more of this in the procurement area. 

Posted by Mary Walker on August 22, 2007 | Comments (0)