Performance Metrics
“You can’t improve what you can’t measure”
• Measures related to quality, cost, delivery, & flexibility are used to evaluate suppliers.
• Metrics should be:1) understandable, 2) easy to measure, & 3) focused on real valueadded
results
• A multi-criteria approach is best
• Total cost of ownership (TCO), is made up of all costs associated w/acquisition,
use, & maintenance of a good or service
Performance Metrics
“You can’t improve what you can’t measure”
• Measures related to quality, cost, delivery, & flexibility are used to evaluate suppliers.
• Metrics should be:1) understandable, 2) easy to measure, & 3) focused on real valueadded
results
• A multi-criteria approach is best
• Total cost of ownership (TCO), is made up of all costs associated w/acquisition,
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