Measures the overall performance of suppliers based on quality, delivery, and cost criteria.

What it Measures ?

Evaluates supplier reliability based on quality and delivery.

Relevant StakeHolders 

Procurement Head, Vendor Manager

In-depth Use Case / Real-world Example

A company manufacturing automotive parts calculates Supplier Performance Index by evaluating suppliers on multiple factors such as quality (defect rates), delivery performance (on-time delivery), and cost competitiveness. For example, if a supplier consistently delivers high-quality components on time and at competitive prices, they score well on the index, indicating strong supplier performance.