Supplier Performance Management

You can’t manage what you don’t measure!

Supplier Performance Management (SPM) is the formal process of managing supplier relationships, measuring performance and driving continuous improvement with a company’s strategic suppliers. In today’s economic climate managing and improving the performance of key suppliers is critical to ensuring a well functioning supply chain and in enhancing competitive position.

As companies increasingly focus on their core competencies and outsource a greater percentage of work, their success becomes ever more dependant on the performance of strategic suppliers. Ultimately, the objective of SPM is to improve the performance of all parties involved in the contract and Service Level Agreement. SPM is part of the broader area of Supplier Relationship Management (SRM) as it enables buyers and suppliers to improve joint performance towards shared business objectives.

SPM enables your company to provide a process to manage suppliers and ensure that the benefits and requirements identified at sourcing and acquisition stages are delivered throughout the life of the contract. Whilst enabling companies to focus resources on value added activities instead of reacting to supplier performance induced problems.

For more information on the benefits which can be gained from a SPM program please see our Learning Zone or contact Performis@BiznetPM.com.