Question

What are some ways of tracking of supplier performance.

Answer 1

Measuring suppliers performance proves to be helpful to improve and manage them. One of the benefit of tracking suppliers performance is that it helps to reduce cost as it helps to get rid of and hidden waste and cost driver in the supply chain. There are many ways through which a suppliers performance can be tracked. Some of the ways are as follows:

• One of the way is to create performance indicators. This will create an enviroment where the performance o fthe suppliers can be compared with the standard and further helps to allign performance goals.
• An evaluation method should be devised and an effective assessment system should be put into place.
• Maintain a good relationship with those suppliers who are cut lose link.
• A proper system should be developed and feedback should be given at regular intervals with the suppliers.
• Critical performance measure should be tracked and reported to all the parties.