Hi, everyone. I am working as a Vendor Development Engineer in a manufacturing company. I need the Key Result Areas (KRAs) for a Vendor Development Engineer, so please help me with this. I have to submit it within 2 days. Please help me.
From India, Mumbai
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1From India, Mumbai
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Dear Charushila,
Do you work in the procurement department? Since I am a procurement faculty, let me tell you that merely assigning KRAs to someone is not sufficient. It appears to me that you do not have a proper Vendor Development Plan (VDP) well in place. Otherwise, this query would not have come up.
You need to have a proper VDP. KRAs originate from this VDP. When designing KRAs, you need to consider the following:
a) Vendor Development Plan for the next three years
b) Categorization and classification of vendors
c) Plan to consolidate vendors
Vendors are no longer just suppliers who are supposed to supply the material on demand. They are considered as business partners. We need to foster a collaborative relationship with them. However, to do all this, the first basic step is paying vendors on time. What is the history of vendor payment in your company? A company that is not regular in paying its suppliers will never derive the benefits of VDP. No amount of KRAs for the Vendor Development Manager will work.
Your VDP will succeed in the real sense provided you are ready to have one relationship manager for key vendors. This is what Toyota Motor Corporation did and showed the world how by managing better relations with vendors, it is possible to reduce operational costs.
The ultimate success of VDP lies in an increase in Inventory Turnover Ratio (ITR). What is your company's ITR today? In reality, ITR will increase provided you empower your Vendor Development Engineer. How many companies in India do this?
I conduct a variety of programs in the field of procurement. You may send me an email to get the details of my programs that will happen in the immediate future.
Thanks,
Dinesh V Divekar
From India, Bangalore
Acknowledge(0)Amend(0)
Do you work in the procurement department? Since I am a procurement faculty, let me tell you that merely assigning KRAs to someone is not sufficient. It appears to me that you do not have a proper Vendor Development Plan (VDP) well in place. Otherwise, this query would not have come up.
You need to have a proper VDP. KRAs originate from this VDP. When designing KRAs, you need to consider the following:
a) Vendor Development Plan for the next three years
b) Categorization and classification of vendors
c) Plan to consolidate vendors
Vendors are no longer just suppliers who are supposed to supply the material on demand. They are considered as business partners. We need to foster a collaborative relationship with them. However, to do all this, the first basic step is paying vendors on time. What is the history of vendor payment in your company? A company that is not regular in paying its suppliers will never derive the benefits of VDP. No amount of KRAs for the Vendor Development Manager will work.
Your VDP will succeed in the real sense provided you are ready to have one relationship manager for key vendors. This is what Toyota Motor Corporation did and showed the world how by managing better relations with vendors, it is possible to reduce operational costs.
The ultimate success of VDP lies in an increase in Inventory Turnover Ratio (ITR). What is your company's ITR today? In reality, ITR will increase provided you empower your Vendor Development Engineer. How many companies in India do this?
I conduct a variety of programs in the field of procurement. You may send me an email to get the details of my programs that will happen in the immediate future.
Thanks,
Dinesh V Divekar
From India, Bangalore
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