Manage Performance of Suppliers Effectively to Achieve Excellence in Supply Chain

Abstract

Supplier Performance Management (SPM) is a process to improve the overall performance of Suppliers, promote better working relationships with Suppliers and remove poor performing suppliers from Pre-qualified Bidders List. Once SPM is in place Supplier Performance can be tracked, analyzed and shared with confidence. Owner company can clearly identify poor performing Suppliers and work with them to improve their performance. The steps involved in achieving an effective SPM are Measure Supplier performance, Analyze available data, Communicate/Engage Supplier and work for tangible Improvement.