Gartner Research

Successful Vendor Performance Management Requires Alignment With Business Objectives

Published: 23 February 2017

ID: G00317424

Analyst(s): Joanne Spencer

Summary

Effective vendor performance management increases business value and enhances vendor relationships. To optimize their vendor portfolio, sourcing and vendor management leaders must standardize a program that results in continuous improvement of vendor performance against meaningful business metrics.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Standardize a Vendor Performance Management Framework by Following Four Key Steps — Assess, Create, Evolve and Realize
  • Develop Meaningful Vendor Performance Metrics by Evaluating Vendors' Ability to Deliver Against Their Stakeholders' Business Objectives
  • Clearly Communicate to Stakeholders How Vendors Are Performing Against Business Objectives by Using Scorecards and Metrics Tailored to the Specific Audience

Case Study

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