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 7 simple steps.
Companies spend an ample amount of time in the supplier selection process. But they lack an effective strategy to evaluate suppliers' performance. They fail to analyze if the suppliers are meeting desired standards. Supplier performance methods deployed in the form of key performance indicators (KPIs) or more sophisticated data gathering do not critically evaluate suppliers. Therefore, we have highlighted some key steps to critically evaluate suppliers.
At SpendEdge, we understand that supplier performance measurement is critical for businesses. Therefore, we have highlighted the key steps to evaluate suppliers that can result in better ROI.
Steps to Critically Evaluate Suppliers
Align performance goals
A clear cut supplier strategy that aligns with the organizational objectives is imperative for businesses. Companies that adopt methodologies such as Six Sigma, lean enterprise, or lean sigma can pursue continuous improvement programs and achieve the next level of excellence. They can better sync supplier activities with organizational goals and boost ROI.
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Choose evaluation approach
In order to measure supplier performance, companies must evaluate suppliers' financial health, business processes, and practices. They should evaluate the supplier's readiness to comply with organizational requirements and meet supply chain management requisites and guidelines. Still thinking about the best approach to measure supplier performance. Not anymore! Get in touch with our experts and identify the best practices adopted by your peers.
Develop an information collection method
Often gaining supplier information becomes a daunting task for companies. Companies should develop methods of supplier collection such as paper questionnaires, web-based questionnaires, extracts from current systems, site visits, and third-party standard certification. They should then select the supplier that can deliver optimal results.
To know in detail about supplier performance measurement, read the complete article here!
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