Suppliers’ performance has a direct and considerable impact on the client’s operations. However, only a few companies invest time and resources to monitor and measure performance, probably because the real benefits of these activities are still partially unknown.
This whitepaper aims at illustrating the rules for the construction of key performance indicators (KPI), as well as the technological solutions that allow reliable measurements of supplier performances.
The Supplier Performance Management system performs two different functions:
1. Reactive function: allows the monitoring and prompt identification of problems in the procurement process.
2. Proactive function: allows the suppliers to comply with the performance requirements that are more relevant to the company, stimulating them to improve their efficiency and to propose new valuable solutions to their customer.
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