Procurement software can be a powerful tool for analyzing supplier performance and identifying areas for improvement. By tracking and analyzing key performance indicators (KPIs) such as on-time delivery rate, quality of products or services, and overall cost, companies can gain valuable insights into supplier performance and make data-driven decisions to optimize their supply chain.
One example of a company using procurement software for supplier performance analytics is GE Aerospace. By implementing a procurement software system, GE Aerospace was able to track and analyze supplier performance data, which helped them identify and address issues with certain suppliers. As a result, the company was able to improve supplier performance and achieve cost savings of $1 billion.
Another example is the construction company Skanska. They used procurement software to evaluate and select suppliers based on factors such as quality, delivery performance, and cost. This led to improvements in supplier performance and a reduction in the number of suppliers they use by 30%, resulting in savings of $20 million.
Procurement software can also be used to track supplier compliance with contract terms and conditions, including delivery schedules and quality standards. For example, a company can use the software to track supplier on-time delivery rates, quality of products or services, and overall cost. These metrics can be used to identify suppliers that are not meeting their contractual obligations, which can be addressed through supplier performance improvement programs.
Additionally, procurement software can assist in identifying and mitigating risks associated with using certain suppliers. By using the software to track supplier financial stability, a company can minimize the risk of supplier default or bankruptcy.
Boeing implemented a procurement software system to track and analyze supplier performance data. By doing so, the company was able to identify and address issues with certain suppliers, which led to improvements in supplier performance and cost savings.
Overall, procurement software can be a powerful tool for supplier performance analytics by providing the data and analysis needed to make informed decisions about supplier performance. By tracking key performance indicators and identifying areas for improvement, companies can optimize their supply chain and achieve cost savings.
FactWise Source-to-Pay offers comprehensive, holistic, dynamic supplier analytics on key metrics including cost, on-time delivery, quality, service, RfX participation, and so on. Users can leverage these insights to make data-driven decisions across the entire procurement journey, right from sourcing and negotiations to order tracking and payments. FactWise is a procurement software with analytics to enable cost reduction, improved supplier management, and optimized direct materials management.