White Paper: Keeping Score -- How To Measure Supplier Performance

Ultimately, the goal is for continuous improvement between your company and your suppliers.

Many analysts, consultants, and software vendors have coined terms for the overall supplier management process. Some of the most common include Supplier Relationship Management (SRM), Supplier Performance Management (SPM), and Vendor Performance Management (VPM). These all have different yet similar meanings, varying from all-inclusive, collaborative and integrated supplier relationships, to simply measuring what the supplier has delivered. According to ARC Advisory Group's Director of Supply Chain Management Research Steve Banker, "Performance Management boils down to measuring whether suppliers do what they have agreed to do. The metrics should be timely, inexpensive, and credible."