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What happens when suppliers grade customers with Two-Way Scorecards?

Contract manufacturing and packaging of consumer packaged goods (CPG) can be seen as having “been born” about 10 or so years ago.

That’s around the time leading brands began to look at outsourcing as a strategic activity as opposed to a tactical make-pack-ship kind of business.

If we examine the difference in the capabilities of suppliers (including contract packagers) then and now, most would say those capabilities are significantly higher today. Yet if we compare key performance indicators (KPIs)—what they are, how we manage them and the process—most people would say that things really haven’t changed very much. In fact, it would seem there is a more disparate approach to KPIs in our industry than in almost any other area.

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