Understanding Supplier Performance Metrics

Supplier performance is crucial to your ongoing relationship with your suppliers. Problems (such as poor quality or late delivery) with supplier shipments can lead to additional expense, a breakdown in the relationship, and, ultimately, exclusion of the supplier.

You can provide your employees (and your suppliers) with ongoing performance measurements against various metrics and provide instant feedback (against predefined targets) if there are delivery or quality problems.

You can generate metrics to track a supplier's on-time, quantity, quality, and quantity ordered versus received performance.

This section discusses:

• Supplier metric access.

• On-time metric.

• Quantity metric.

• Quantity ordered versus received metric.

• Quality metric.