Especially regarding a supplier relationship, there is an incredible amount of information in a company: What does the supplier do at all? What is the contractual situation? What articles or services does the business partner supply, at what prices, in what quantities and at what intervals? Which locations are supplied? Have there been problems in the previous cooperation? Are there risks in the supply chain? What about the issue of digital collaboration? And so on…
As a rule, all this information is available somewhere in the company, if it is documented. The problem: It is rarely bundled in one place. Possible sources, both internal and external, can be:
Invoices / Payments
Supply chain risk management software
Creditworthiness indices (e.g. CREFO)
Wouldn’t it be nice if, for example, as a buyer preparing for a supplier meeting or negotiation, you could press the button once and see all the information about the counterpart at a glance, updated daily and clearly arranged? We are talking here about the so-called 360° view of the supplier or the supplier dashboard. This is usually part of purchasing controlling, whereby the supplier dashboard already focuses on the data of one supplier or one supplier group. The advantage of the dashboard is that the sum of all data and information is already prepared in a structured manner for the „end user buyer“ and is clearly presented in tables and diagrams. The user does not have to work through different sources and/or possibilities of the breakdown first, rather he receives a condensed result. At the same time, however, there is always the option of delving deeper into the subject matter and taking a closer look at details of purchasing documents, for example, if desired.
The supplier dashboard
In the following, we would like to give you an overview of the information that can be included in a supplier dashboard. As is often the case, every company is different, and it is possible that not all the information and key figures mentioned here are relevant for you. When implementing such a dashboard in your company, it is therefore important to define the content as well as the sources individually.
Information on the business partner and contractual design
Company data in general
Affiliated companies / group structure
Turnover and its development
Dependence of the supplier on your company
Information about quality and environment management
Payment and delivery conditions
Purchasing volume and order structure
Purchasing volume and its development
Share of the supplier in the total volume / volume of the material group
Share of single sites / countries in the supplier volume
Number of orders and positions
Price development (in the benchmark)
Delivery times / Lead times
ABC structure (classification of items by value)
XYZ structure (Classification of articles according to consumption behavior)
Measures (defined development measures incl. deadlines and responsibilities)
Risk assessment (finance, supply chain, raw material, sustainability, …)
Digitalization and innovation
Call-off rate from catalogs and framework agreements
– Digitized document transmission
(Automated) invoice processing
Shit in shit out
But at the end of the day, a supplier dashboard can only be as good as the data input that precedes it. It therefore makes sense to take a close look at the data in advance: Which data is already available, is recorded in a structured manner and can therefore be evaluated? Which data requires action to optimize its quality? And what additional information is valuable for a dashboard and should therefore be collected in the future?
As you can see: A supplier dashboard offers very high benefits, but requires precise planning beforehand before asking the question: What data will be collected? Which data will flow into the dashboard? How will the output be presented? Nevertheless: The effort is worth it. Because as Francis Bacon said: knowledge is power. And in this case, it strengthens your negotiating position!