Survey

In spite of high inflation some cost savings were obtained. How much net cost changes in the last 6-12 months did you obtain over or under the budget?

More than 10% under.
1 to 10% under.
No change.
1% to 5% over,
6% or more over.

Records should be kept of the number of quality and delivery problems. The percentage of rejections or o..." />

The Key to Controlling Quality and Delivery

Date: 08/01/2007

Records should be kept of the number of quality and delivery problems. The percentage of rejections or off schedule deliveries compared with the total number of placed orders gives an objective measurement of supplier performance. Depending on memory or a gut feel of performance is not professional and is often misleading because of bias for one reason or another.

Each year for the past several years, questions on the Society’s annual benchmarking survey asked for the percentage of rejections or late shipments experienced. A great many respondents did not answer these questions. We can only assume it was because the information was not readily available.

If purchasing and its associated activities are to be viewed as truly professional hard data must be accumulated and used rather than vague impressions or beliefs.

In the past it was difficult and costly to record, analyze, and report purchasing activities except by large organizations with large staffs. Today with computer access on practically every desk each employee has the power to gather information and use it to obtain better results.

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