LONDON--(BUSINESS WIRE)--SpendEdge, a leading provider of procurement market intelligence solutions, has announced the completion of their latest article on how to measure your supplier performance in seven simple steps.
Organizations usually invest a considerable amount of time and effort into the supplier selection process. But they do not know how to evaluate their suppliers' performances. They deploy some form of supplier performance measurement, in the form of key performance indicators (KPIs), data gathering, and on-site assessment programs. Consequently, this impacts the operational efficiency of organizations.
At SpendEdge, we understand that measuring supplier performance is imperative for companies to adhere to standards. Therefore, we have listed the key steps to critically evaluate suppliers.
Steps to Critically Evaluate Suppliers
Align performance goals
Organizations must have an effective supplier strategy aligning with overall organizational objectives and goals to improve supply chain management. Six Sigma, lean enterprise, lean sigma, continuous improvement, operational excellence, and total quality management can be a few of the strategies that organizations can follow to pursue continuous improvement programs.
Aligning supplier strategies with organizational objectives is vital for companies to improve the supply chain. Request free platform access to access our smart procurement solutions now!
Choose evaluation approach
There must be a clear approach to evaluate critical aspects of supplier performance. This should include financial health, operational execution, and metrics business processes. This will enable organizations to review and understand the supplier’s willingness to comply with the organizational requirements while meeting supply chain management requisites. To know how you can critically examine suppliers, get in touch with our analysts here!
Develop an information collection method
Collecting information forms a key part of supplier evaluation. It can be in the form of paper questionnaires, web-based questionnaires, extracts from current systems, site visits, and third-party standard certification. Every method has its challenges and complication. Organizations can select the one that best serves their requirements.
To know in detail about the complete steps involved in measuring supplier performance, read the complete article here!
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