Performance of Nuon's suppliers improves dramatically

Nuon Procurement & Logistics (P&L) uses Every Angle to professionalize its suppliers. Every Angle extracts information from SAP that gives buyers insight into indicators such as delivery reliability and rush deliveries. This has considerably improved delivery performance.

Nuon Procurement & Logistics
Nuon P&L is part of Nuon Network Services and procures all of the components and services required to lay networks. P&L procures, for example, electricity cables from the manufacturer and makes sure they are at the right place at the right time. Nuon P&L aspires to improve its services, and the lean philosophy is key to achieving this goal. This prevents a lot of time being wasted on activities that do not contribute to the end result.

Supplier management and Every Angle
As part of the current lean project at Nuon P&L, a project team is working on professionalizing supplier management. This means that the group is looking for information that provides good insight into the suppliers' performance and ways to improve it.
Every Angle is used to extract the right information from SAP and generate reports that enable buyers to quickly gain insight into the following indicators:

• Delivery reliability requested: specifies whether the supplier delivers according to the requested delivery date.
• Delivery reliability confirmed: specifies whether the supplier delivers according to the confirmed delivery date.
• Partial deliveries: specifies how many (undesired) partial deliveries a supplier makes.
• Price differences: the number of times an invoice is blocked because of a price difference indicates how well the supplier sticks to the quoted price.
• Rush deliveries: zooms in to the number of rush deliveries (and hence the supplier's flexibility).
• Above forecast: provides insight into deliveries that were larger than the agreed quantity.

Achieved results
Nuon P&L uses Every Angle reports to analyse the data. The results of the second indicator is shown in the graphic. The buyers use the data to schedule meetings with underperforming suppliers (meaning those who deliver too late or too early) to draw their attention to their lacking performance. A pilot revealed that this way of working considerably improved the suppliers' performance.

Goal: increase their own delivery reliability
Nuon P&L and Every Angle are currently discussing a number of changes to the application so the other indicators can be analysed as well. This will enable Nuon P&L to increase not only its own delivery reliability, but also the performance of its suppliers in other areas. Ultimately, P&L will be able to improve its logistics processes and plan better, which will improve its delivery reliability towards its own (internal) customers.