Vendor Management

Team 5

SUPERFEET WORLDWIDE
History
Founded by doctors Dennis N. Brown, D.Sc. & Christopher Smith D.P.M. Began as the Sports Division of N.W. Podiatric Laboratory
Superfeet created in 1977

Product
Premium Orthotic Insoles

Small to medium sized manufacturer

about 150 employees worldwide

VENDOR MANAGEMENT
Strategies to build and sustain long-term vendor relations that optimizes overall supply chain value and performance

Benefits
More-qualified suppliers Improved quality and customer satisfaction More informed sourcing decisions Lower total cost of ownership (TCO) Increased buying leverage Early identification of performance issues Visibility into total costs

EVALUATION & SELECTION

Analyze Business Requirements
Identify core competencies Determine outsourced products that will result in cost/strategic advantage relative to goals

Vendor Evaluation and Selection

Establish appropriate performance measures with assigned weights based on importance Select vendor based on total performance value calculated

Contract Negotiations
Deal that benefit both parties in every area

Managing Vendors
Ongoing activities until vendor retirement Vendor Performance, Relationship, and Contract Management
Incentive based activities Share business goals and plans when possible On-going monitoring and evaluation

Vendor Portfolio Optimization

Optimize use of vendor resources and skills

Vendor Risk Management

Mitigate risk focusing on scope of product requirements

Measuring Performance
Product availability Product/service quality Subject matter expertise (services) Support response time Resource availability Reliability Compliance with contract terms Business practices On-time delivery Time to completion Customer satisfaction

THE VM PROGRAM
Evaluation and Selection
Appropriate metrics and service level agreements

Ongoing Vendor Performance, Relationship, and contract management

Vendor value in measurable and quantifiable terms Incentive based activities

Vendor Portfolio Optimization

Optimize use of vendor resources and skills

Vendor Risk Management

Mitigate vendor risks

Vendor Retirement

Superfeet VENDORS
VENDOR Ace World LOCATION Busan, South Korea PRODUCT Top Covers (80%) Top Covers (20%) Janco Dover, New Hampshire

Myco Trojan Lithographic

Bellingham, Orthopedic Washington Caps Renton, Washington Product Boxes

Alliance Packaging

Renton, Washington Shipping Boxes

SUPPLIER RELATIONSHIPS
98% quality from all vendors 99.7% on time promise made by Superfeet
Requires vendors to have a 99% on time delivery criteria to meet

Increase in demand went up by 28% last year

Long lasting relationships
Jenco
Trust gained Added flexibility

CONCLUSION