During the procurement process, all kinds of agreements and promises are made regarding the product and performance to be delivered. In this whitepaper, we consider the importance of measuring supplier performance.
Ensuring that these agreements are met is best done by implementing a measurement process throughout your organization. Read an introduction here and receive the full white paper in your inbox.
A deal is a deal and a promise is a promise. So it is important to look at the dozens, perhaps hundreds of agreements we make with suppliers.
Within the broader purchasing processes, a lot of time and effort is invested in selecting and contracting the most suitable supplier. Buyers accurately determine who can best meet their requirements and do so at the best price. Subsequently, much attention is also paid to the drafting of agreements which outline discussed requirements and obligations.
Generally speaking, procurement professionals begin to work with their newly contracted suppliers with great enthusiasm, and yet we know that in the days to come, as other responsibilities beckon, attention is quickly drawn to other matters. So are the intended results being achieved? Do these suppliers fulfill their agreements? Are we satisfied with the cooperation, communication, and quality of the product or service we receive? Weeks, months, perhaps years may pass where we work together with these suppliers, but how do we actually manage to unlock maximum value.