Monitors and evaluates supplier performance based on key metrics such as quality, delivery time, and customer service.

What it Measures ?

How supplier performance is changing over time.

Relevant StakeHolders 

Vendor Managers, Strategic Sourcing

In-depth Use Case / Real-world Example

A company that manufactures car parts tracks Supplier Performance by evaluating each supplier’s ability to deliver quality components on time. If a supplier consistently delivers defective parts or late shipments, this will reflect negatively in the supplier’s performance score. Tracking performance regularly helps the procurement team ensure that only high-performing suppliers are retained, improving overall product quality and operational efficiency.