Supplier Performance Metrics
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Today’s tl;dr : Supplier Performance Management by Art of Procurement - 6 min read
📝 Summary
This article explores key metrics for effective Supplier Performance Management (SPM), essential for ensuring suppliers meet performance expectations and contribute to business success. Metrics like on-time delivery, quality defects, cost control, and innovation are crucial to evaluating supplier efficiency and their long-term value to an organization. The article emphasizes the need for a balanced approach, combining traditional metrics with more advanced indicators such as supplier risk, sustainability, and collaborative efforts.
📌 Key Takeaways
On-time delivery and quality are fundamental metrics to monitor supplier performance.
Companies should measure cost control to ensure suppliers help manage budgets effectively.
Advanced metrics like risk, sustainability, and innovation play a key role in long-term supplier relationships.
Balancing traditional and advanced metrics leads to a more comprehensive view of supplier performance.