Home › Blog › Articles posted by Maria-Pia Drago

SupplyOn Blog

Maria-Pia Drago

Product Owner

As Product Owner for Product Development and Visibility, my primary goal is to build innovative and flexible applications that simplify users' daily work through automated, comprehensible, integrated, AI-powered processes.
One such product is the new Performance Management application, which provides customers and suppliers with a transparent view of supplier evaluations.

Posts by Maria-Pia Drago:

SCM Insights

Supplier Performance Management: how to systematically strengthen your supply chain

You can only manage what you measure, they say—and rightly so. This is especially true when it comes to supply chain performance. Disruptive change and increasing demands for cost efficiency, quality, and speed present unique challenges. Only by measuring how well it is performing can the supply chain be properly aligned and optimized.This requires a comprehensive, holistic view of supplier performance which goes beyond traditional key performance indicators (KPIs). The evaluation scheme should also provide sufficient leeway and flexibility to respond quickly to internal and external changes. Most importantly, performance measures need to have impact. In other words, they need to shape the way we interact with each other. Therefore, evaluation criteria must be transparent and accessible to all stakeholders, and there must be a proactive, open exchange of information. Only then can both sides improve collaboration.So there are six factors that characterize good Supplier Performance Management: it must be holistic, flexible, binding, transparent, proactive and collaborative. But what does this mean in practice?Holistic Supplier ManagementMore than "just" performanceTraditional metrics such as on-time delivery (OTD), on-time, in-full (OTIF), unit cost, order fulfillment (PO collaboration), and first-pass yield (FPY) are certainly important. But there is more to a holistic picture: There are qualitative factors such as response time, service quality, complaint handling, price stability, and resilience to various risk factors.Another important evaluation category is determined by the supplier's capabilities. This includes factors such as agility and flexibility in the face of change, innovation and speed, the degree of digitization of its processes and, last but not least, sustainability aspects.Only the combination of all these factors provides a complete picture of a supplier’s performance. If you neglect one factor in the assessment, this can lead to significant competitive disadvantages or even serious compliance problems, for example with regard to the Supply Chain Acts in Germany or the USA. Flexible Supplier Performance ManagementCustomized and quickly adaptableEvery business is different. So are their supply chains and supplier relationships. This has an impact on Supplier Performance Management: which topics are important, which criteria are included in which scores and how they are weighted, and who has access to which data internally—all of this varies greatly from company to company.Accordingly, a Supplier Performance Management solution must be individually adaptable if it is to make a value-adding contribution. At SupplyOn, we have therefore placed particular emphasis on the high configurability of our Performance Management solution. With just a few clicks, companies can configure the content and data fields of a table, as well as filters, scorecards and hierarchies.Organizational structures can also be stored to enable multi-dimensional monitoring at the division, plant, or country level. The dashboard, too, is customizable. In the event of organizational changes or changes in the business environment, companies can easily adapt the configurations without any additional implementation effort—and optimally adapt their Supplier Performance Management to their changing needs at any time. Binding Supplier Performance ManagementProviding direction for procurementMeasuring supplier performance is not an end in itself. Supplier Performance Management can only function as an active control tool for supply chain quality if it is closely linked to all downstream procurement processes. In this sense, supplier performance is the supplier sentiment that companies use to decide which materials and processes (RFxs, auctions, orders and contracts) the supplier is qualified for.In this way, the purchasing department can ensure that only suppliers that comply with the company's internal specifications can be selected. This ensures compliance along the supply chain.SupplyOn Performance Management can be seamlessly integrated into internal systems via API, so that even global companies with very heterogeneous IT landscapes can benefit from this company-wide compliance enforcement. The solution also integrates with other SupplyOn solutions such as Supply Chain Collaboration, Sourcing and Quality Management.The aim of all these measures is to achieve an integrated workflow that leads to a continuous improvement in supplier performance—and thus in the entire supply chain.Transparent Supplier Performance ManagementA common understanding between customer and supplierSuppliers can only improve if they know — and above all understand! — how they are perceived by their customers. What metrics are most important, what factors go into a score, and what is actually measured? A supplier must be able to answer all these questions in order to adjust its own goals accordingly and initiate suitable improvement measures.With SupplyOn Performance Management, companies can share the evaluation categories and evaluation hierarchies with their suppliers. This customer-based structure makes it easier for suppliers to understand the reasons behind certain scores. Info buttons explaining the calculation of the respective KPI and traffic light functions also help to make this easier to understand.All of this ensures that both sides have the same view of the data and therefore the same understanding of supplier performance Proactive Supplier Performance ManagementAutomatic trend monitoringThe sooner companies and suppliers can take action on performance issues, the better. This requires up-to-date data. SupplyOn Performance Management uses automated processes and API connections to continuously collect all data in real time. Trend analyses provide a quick overview of improvements or deteriorations compared to historical data, making lengthy analyses a thing of the past. This enables companies to proactively take appropriate development and improvement actions for their suppliers and store them directly in the system.In the future, AI functionalities will further expand this proactive approach in SupplyOn Performance Management by automatically identifying optimization potential for suppliers and suggesting appropriate measures.Collaborative Supplier Performance ManagementWorking as a teamThe customer-supplier relationship is not a one-way street. It thrives on productive collaboration on both sides. Supplier Performance Management should reflect this collaborative approach. After all, different perspectives can quickly lead to misunderstandings and feelings of unfairness if not discussed.For example, last month's on-time delivery (OTD) score may have been 80 instead of 100 according to the customer's data, but when discussed with the supplier, it turns out that the late delivery was due to weather-related accidents and traffic jams—factors beyond the supplier's control. Both parties can then agree to adjust the score accordingly.For this exchange between customer and supplier, SupplyOn Performance Management offers convenient comment functions, the option of setting up measures and an integrated supplier self-assessment. Here, suppliers can present their own performance or capabilities and initiate a collaborative exchange with their customers.But collaboration is not just about individual scores. It is also about the customer and supplier working together to improve overall supplier performance.Bottom lineEmbedding all six aspects into Supplier Performance Management leads to more harmonious relationships because it enables collaboration on an equal footing. Suppliers are seen as equal business partners, pulling in the same direction as their customers, with the goal of continuously improving processes and collaboration. Suppliers can tailor their activities and actions to the needs of their customers and continuously analyze their progress. This enables companies to develop their suppliers efficiently and strengthen their own competitive position.The combination of these two perspectives makes Supplier Performance Management a powerful lever for increasing the resilience, efficiency and sustainability of the entire supply chain. At SupplyOn, we integrate these two perspectives through close cooperation with companies and suppliers. In this way, we continuously gather valuable feedback from both sides to continuously expand the SupplyOn Supplier Performance Management solution, integrate the latest technological advancement and improve it even further. As a result, companies and suppliers can work most efficiently and always stay one step ahead of the competition.
Supplier Performance Management: how to systematically strengthen your supply chain
Supplier Community

Introducing Performance Management for enhanced collaboration

On a vibrant and enlightening Supplier Community Event, industry professionals gathered to witness the unveiling of the new cutting-edge SupplyOn Performance Management. The event was designed to introduce this innovative solution, offer a sneak preview, and host a panel discussion with esteemed speakers from Bosch, ZF and Klüber Lubrication. This blog delves into the highlights of the event, the features of the new solution and insights from the panel discussionThe Supplier Community Event brought together suppliers, procurement specialists, and supply chain managers from various industries. The event aimed to foster collaboration, share best practices, and introduce the latest advancements in the development of Performance Management. Held at a state-of-the-art venue, the atmosphere was charged with excitement and anticipation as attendees eagerly awaited the big reveal. Hearing customer voicesThe event opened with a message from Andrei Antipov (Director Purchasing) and Andreas Alber (Senior Manager) from Bosch. They emphasized the importance of digital transformation in collaboration with suppliers and introduced their plans with the new SupplyOn Performance Management. Various functions such as real-time feedback and performance evaluations shall contribute to improving quality and efficiency. With this initiative, Bosch aims to build stronger, transparent and sustainable partnerships with its suppliers.  Unveiling a new eraThe centerpiece of the event was the presentation of the new Performance Management. This innovative tool promises to revolutionize how businesses manage, evaluate, and improve supplier performance. Key features of the solution include: Real-Time Data AnalyticsThe solution leverages advanced data analytics to provide real-time insights into supplier performance. Users can monitor traditional key performance indicators (KPIs) such as quality, delivery, cost and service levels, but also several soft facts, strategic KPIs through an intuitive dashboard. Automated ReportingGone are the days of manual data collection and reporting. The solution automates these processes, ensuring accuracy and saving valuable time. Customizable reports can be generated with a few clicks, offering detailed performance summaries and trend analyses. Performance ScorecardsSuppliers receive performance scorecards that highlight their strengths and areas for improvement. These scorecards foster transparency and encourage continuous improvement. Risk MitigationThe solution includes robust risk management features. It assesses potential risks by monitoring suppliers' financial health, compliance with regulations, and adherence to contractual obligations, enabling proactive risk mitigation. Collaboration FeaturesBuilt-in collaboration tools facilitate seamless communication between businesses and their suppliers. Issues can be addressed promptly, and improvement plans can be developed collaboratively, ensuring alignment and mutual benefit.During the event the suppliers had the opportunity to volunteer for involvement in the further development of the solution and provide feedback during testing. In addition, they could also vote in polls on what additional functions they would like to see in the solution. Sneak Preview: Hands-On ExperienceAttendees had the opportunity to have a closer look at the solution through a live demonstration. Guided by myself, Maria-Pia (Product Owner), and the valuable questions from Patricia (Supplier Onboarding specialist) suppliers explored the solution's functionalities and experienced firsthand how it can streamline their supplier management processes. The sneak preview generated enthusiastic feedback, with many attendees expressing excitement about the solution’s potential to enhance their supply chain operations. Panel Discussion: Insights from industry expertsA highlight of Supplier Community Event was certainly our panel discussion featuring industry experts in our area of focus: Monitoring and managing delivery and quality performance.Bruno Paris (Quality Engineer, Corporate Supplier Quality Management) explained ZF's use of several SupplyOn solutions in the area of supplier quality management such as Project Management, Problem Solver and Performance Monitor for managing APQP projects, complaints, 8D and performance data, highlighting that over 4,500 suppliers use their performance monitor for monthly quality and logistics KPI updates for globally monitoring their quality and logistics performance on a monthly basis.Marcus Hylla explained the usage of the Performance Monitor at Klüber Lubrication from a supplier’s point of view. He described how they work with the solution for exchanging data with their customers and expressed the need for an automated solution to save even more time in the future.Among other topics the discussion covered AI's potential in streamlining processes, offering proactive analysis and providing interactive chatbots. I would like to thank all our speakers for revealing insights from many different perspectives. As businesses continue to navigate the complexities of the global supply chain, the new Performance Management solution stands out as a powerful tool to drive performance, reduce risks, and foster stronger supplier relationships. In terms of AI, SupplyOn sees a high potential in making data analysis faster and decision making easier within Performance Management. The Supplier Community Event not only showcased this innovative solution but also highlighted the collaborative spirit and forward-thinking approach that will shape the future of Performance Management.
Introducing Performance Management for enhanced collaboration