Supplier Performance Measurement

The CSCP material emphasizes consistent and continuous measurement rather than relying on subjective impressions of supplier performance.

Why it matters

Reliable measures help organizations identify supplier strengths and weaknesses, focus resources, develop strategic suppliers and understand the cost of supplier-caused problems.

Core concepts

• Performance systems should track all suppliers to some extent and focus more strongly on critical suppliers.

• Measures should be consistent enough to allow supplier comparisons and trend analysis.

• Automation can reduce the manual effort of collecting and reporting supplier performance data.

• SCOR metrics can be used as part of supplier-performance evaluation.

• Customer satisfaction with specific suppliers can provide additional evidence about supplier quality and service.

• Measures should be connected to actions such as improvement, development, certification or sourcing changes.

• Performance data should be reliable, current and relevant to the relationship.

Remember for the exam

• Measurement should be consistent and linked to action.

• Supplier measures can include quality, delivery, responsiveness and business capability.

• SCOR metrics can support supplier evaluation.

• Performance data support both improvement and sourcing decisions.

Apply it

• Use this concept in a practical decision by asking: Supplier Performance Measurement

• Then check the decision against this principle: The CSCP material emphasizes consistent and continuous measurement rather than relying on subjective impressions of supplier performance.

Exam trap

Watch for questions that test this distinction or principle: The CSCP material emphasizes consistent and continuous measurement rather than relying on subjective impressions of supplier performance.

Key takeaway

Supplier performance measurement turns supplier expectations into observable results so the organization can compare performance, focus improvement and support sourcing decisions.