Business
Challenge:

Building a Data-Driven Framework for Effective Supplier Evaluation

Client is a leading retail giant in the GCC, operating across multiple geographies with a network of over 700 local and international suppliers. They manage a diverse product portfolio exceeding 100,000 SKUs across departments like FMCG, electronics, garments, and household items.
Clients experience inefficiencies in marketing budget allocation due to a siloed view of performance across.
The client prides itself on cultivating strong and collaborative relationships with its extensive supplier network. The client lacked a robust supplier performance management system and faced a significant challenge in negotiating favorable terms with suppliers.
The lack of real-time insights limits their ability to secure better deals and discounts, hindering informed decisions with suppliers. As a result, the client is unable to optimize their supplier relationships, missing out on potential cost savings and efficiencies.
The client also lacked a proper mechanism to track the numerous contracts in place with the suppliers, leading to a lack of visibility into the contract terms, renewal dates, and compliance.
The objective was to develop a comprehensive supplier evaluation framework, integrating multiple key performance indicators to assess supplier performance.
Provide real-time insights that will empower the procurement team to negotiate favorable deals

Current process assessment

Met with the procurement team to grasp their pain points and specific expectations regarding suppliers.
Learned retail supplier performance KPIs and associated industry.

Metrics identification and dashboard design

Held brainstorming sessions to identify the key performance indicators that help us assess and monitor the performance of the suppliers.
The Power BI tool was used to develop a comprehensive dashboard that evaluates the performance of the suppliers at various levels, such as order fulfillment, sales and margin, backend rebates, and
The Power BI dashboard enabled supplier selection and comprehensive 360-degree.
Integrated the ability to perform detailed assessments of a chosen supplier across various product categories, enabling benchmarking against competitors.

Profound and robust insights into every performance facet of suppliers empowered the client to engage in impactful.
Leverage real-time data and KPIs to secure better deals, optimize contract terms, and streamline contract management, leading to significant cost savings and improved procurement.
Gaining clear visibility into contract terms, including renewal dates and rebate structures, allows for optimized utilization of rebates and negotiation of more favorable renewals.