Supplier Performance Management workflows involve assessing, monitoring, and improving the performance of suppliers to ensure they meet contractual obligations and organizational goals, ultimately aiming for cost optimization, risk mitigation and continuous improvement.

Key activities include:

Performance measurement

Establishing KPIs and tracking supplier performance against those metrics.

Performance evaluation

Regularly assessing supplier performance and identifying areas for improvement.

Performance management

Developing and implementing plans to address performance gaps and improve supplier performance.

Communication and collaboration

Maintaining open communication and collaboration with suppliers to foster strong relationships.

Supplier Performance Management provides the following benefits:

Improved quality

Consistent monitoring and feedback can lead to higher quality products and services.

On-time delivery

By tracking delivery performance, organizations can ensure that suppliers meet deadlines.

Cost optimization

Identifying and addressing cost inefficiencies can lead to significant savings.

Reduced risks

Proactive monitoring and management can help mitigate supply chain risks.

Stronger supplier relationships

By fostering open communication and collaboration, your teams can help build stronger relationships with suppliers.