Gartner Research

The Fundamentals of Establishing an IT Vendor Performance Management Program

Published: 25 July 2019

ID: G00402628

Analyst(s): Joanne Spencer , Edward Weinstein


Sourcing, procurement and vendor management leaders struggle to drive continuous vendor performance improvements beyond operational service levels. SPVM leaders must develop a performance management discipline that motivates vendors to help them realize business objectives, goals and strategies.

Table Of Contents
  • Key Challenges
  • Recommendations



  • Standardize Your Approach to Vendor Performance Management
    • Key Element 1 — Create Metrics and Define the Collection Process
    • Key Element 2 — Reporting: Collect, Analyze and Present the Data
    • Key Element 3 — Internal and External Reviews
    • Key Element 4 — Action: Plan, Assess and Communicate
  • Establish Unified Vendor Performance Management Processes and Reports
  • Develop and Report on Meaningful Vendor Performance Metrics

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