Benefits of Scoring

Your suppliers deliver critical products and services to your business, and knowing how they perform against key business metrics empowers your company to make informed, strategic decisions. Maximize the value you receive from your supply base with supplier scoring.

"Companies that maintain a standardized record of quality spend 38% less annual revenue as compared to their peers."

- Aberdeen Supplier Performance Measurement Benchmarking Project

7 Benefits of Supplier Scoring

Align suppliers with business goals and KPIs

When you establish supplier expectations and deliverables that link to corporate objectives, you ensure performance improvement initiatives are focused where they’ll have the greatest impact.

Alleviate supply chain risks and potential disruptions

By assessing performance across the supply base, you’ll gain proactive insight into areas of risk so you can instill corrective actions before it causes disruption.

Boost transparency and information sharing

With so many teams interacting with suppliers, gaining a holistic understanding of your relationship can be a challenge. Scorecards give a voice to all stakeholders and leverage the collective knowledge of the company.

Stronger collaboration and communication with suppliers

Working from an agreed-upon Scorecard ensures suppliers are aligned with your business and clear on expectations. Scorecards drive accountability and enable teams to work together towards issue resolution as partners.

Drive continuous supplier performance improvements

With recurring performance reviews, you’ll understand not only how your suppliers are performing today but also how they’re evolving through time.

Recognize hard and soft cost savings

Strong supplier relationships and clear expectations has been shown to significantly reduce cost - whether through the opportunistic capture of savings or the avoidance of expensive mistakes.

Establish standardization

Supplier scoring introduces a common language across the supply base, facilitating standardization and easier comparison across suppliers.

Ready to recognize these and other benefits?

Try LVRG with your team and start tracking supplier performance with ease.

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