Gartner Research

Supplier Performance Management: It’s More Than a Scorecard, It’s a Strategy

Published: 07 August 2018

ID: G00357167

Analyst(s): Miguel Cossio

Summary

Supply chain leaders in sourcing and procurement have a fundamental responsibility to monitor and improve the performance of their supply base. This research provides an outline of the key elements needed to build a robust supplier evaluation process.

Table Of Contents
  • Key Challenges

Introduction

Analysis

  • Use Supplier Segmentation to Identify the Group of Suppliers Where Performance Improvements Will Yield the Greatest Value
  • Define Supplier Metrics That Encourage Innovation and Partnering, Including Aspects Beyond Operational Performance
  • Deploy Scorecards to Convey Performance Expectations and Set Priorities, Not Just Measure; Incentivize High-Performing Suppliers
  • Request and Incorporate Supplier Feedback to Identify What Needs to Happen on Both Sides of the Relationship in Order to Improve

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