This new resource provides a common
language — increasing effectiveness, and saving time.
“While every manufacturer and distributor will have their own special
needs, this gives each party the framework for a common language,” said
Don Lovre, Director of Distribution at B. Braun Medical. “If adopted, all
parties should be speaking with about 80% to 90% of the same terms.” Lovre
alongside Russ Hicks, Cardinal Health’s VP of Strategic Sourcing, co-chaired
the council and directed efforts to develop the resource.
Scorecarding enhances customer focus and planning
Many council members report they regularly
use scorecarding conversations to
review how current relationships affect their
ability to service customers. With this data,
trading partners gain insight into each
other’s experience and satisfaction. The
conversations foster discussions about
upcoming events and make plans around
demand surges.
Scorecarding conversations between
distributors and manufacturers occur on a
semiannual or monthly basis. Council
member Irfan Buddha, Senior Director of
Strategic Initiatives for Healthcare Services
at Henry Schein, said his organization
provides an interactive portal that’s updated
monthly for manufacturers’ use. Monthly
calls go beyond traditional reviews, and
include business tactics and improvement
plans. Some partners forego calls and just
supply the scorecarding data.
Conversations help trading partners meet an important need
Assembling data ahead of a scorecarding
conversation requires a significant time
investment, Hicks noted. The time investment
is exacerbated if it needs to be done
multiple times for different trading partners.
HIDA’s Vendor Relations ShareGroup
identified on-time delivery of shipments
and fill rates as information that is essential,
but often missing from or inaccurately
reported on a manufacturer scorecard.
These measures are included in
HIDA’s scorecarding resource.
Taking a longer-term focus
on scorecarding conversations
encourages more strategic
discussions, council members
said. With a common understanding
of the metrics
employed, trading partners are
closer to a shared vision of
reality. This means they are
more able to work together to
solve problems.