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On-Time Delivery (OTD): Definition, Formula, KPI & How to Improve It
On-time delivery (OTD) is one of the most important supply chain performance metrics. It measures how reliably suppliers, manufacturers, or logistics providers deliver orders on or before the promised delivery date. OTD is calculated by dividing on-time deliveries by total deliveries and multiplying by 100. While many define OTD as a simple percentage, high-performing organizations…
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Mastering Vendor Risk Assessments: A Guide for Manufacturing Leaders
Vendor Risk Assessments: What They Are and Why They Matter Vendor risk assessments (VRA) are a crucial component of a vendor risk management strategy, ensuring purchasing teams and operations managers can identify, evaluate, and mitigate potential direct procurement risks before they disrupt supply chains or compliance efforts. As businesses become increasingly dependent on third-party vendors…
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The SRM Showdown: Find the Right Supplier Relationship Management Software
With global supply chains growing increasingly complex, businesses require robust tools to maintain visibility and control over their supplier relationships. Supplier Relationship Management (SRM) software plays a vital role in ensuring that companies can proactively manage supplier risks, monitor performance metrics, and streamline procurement workflows. Used effectively, a capable SRM solution can prevent disruptions, enhance…
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How to Create a Data-Driven Vendor Scorecard That Improves Supplier Performance
Your supply chain is only as strong as your vendors. If they miss deadlines, send defective raw materials, or fail to communicate, your entire operation suffers. But how do you separate your top-tier vendors from those dragging you down? That’s where vendor scorecards come in. What Is a Vendor Scorecard? A vendor scorecard is a…
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Supply Chain Visibility: How to Reduce Supply Volatility and Improve Business Planning
The Importance of Supply Chain Visibility for Business Success Supply chain issues like delays, rising costs, and shipping problems are happening more often, making supply volatility management a growing concern (McKinsey – Future-proofing the Supply Chain). These problems hurt inventory, damage customer trust, and lower profits. Businesses face global instability, changing economies, and shipping delays,…
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Strengthening Supplier Relationships: Why Direct Procurement Demands a Strategic Approach
For procurement professionals, especially in direct procurement, the strength of supplier relationships directly affects business outcomes. Supplier Relationship Management (SRM) isn’t merely about managing vendors—it’s about forming strategic partnerships that elevate product quality, reduce operational risks, and contribute significantly to financial success. The Strategic Value of SRM in Direct Procurement Direct procurement involves acquiring the…