Measurement of a supplier’s performance involves defining key performance standards, each with a metric of performance, and monitoring performance against the standards. Supplier relationship management involves creating a framework not only to measure performance, but also promote performance improvement. For the supply of tangible products i.e. goods, it is relatively easy to measure supply chain performance such as lead-time. It is harder to measure the quality of service delivery, and if measurement is broadened to include corporate social responsibility issues, such as ethical behaviour, then measurement of supplier performance becomes a significant challenge. See also Benefits Realisation Plan, KPI, Performance Review and Supplier Relationship Management.« Back to Glossary Index
Measurement of Supplier Performance
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With over 800 Procurement specific terms (and growing) you will find everything you need to know or thought you knew about the Procurement function. Our aim is to provide you with a comprehensive list collated from the Comprara Groups hub of training and consulting source materials.The Procurement Glossary has been compiled by industry expert Paul Rogers.