Measuring supplier performance is an important purchasing tool. This paper will review the steps we took in establishing supplier performance measurement program. I will review: the results of our supplier performance benchmarking, measurement details we established for the four performance factors we selected, and general tips that you should consider in your supplier performance measurement program.
What others are measuring. We had much debate as to the most important factors that should be used to measure supplier performance and the weighting the individual factors should get in the overall supplier rating. We established a team to study other companies who had an established supplier performance measurement program to determine which factors and weights they were using