This week's Wiki-Wednesday topic is Supplier Performance Management. I chose this as a tie in to the Strategic Sourcing & Procurement (LinkedIn Group) call on Thursday to discuss whether supplier performance is improved through penalties. To my disappointment, the topic is very light. I am hoping that someone in our network wants to update it - because I know you have the knowledge and experience to do so!
Here is the topic as is:
A company that deploys effective supplier performance management ensures that a supplier’s performance meets the expectations defined in the contract and against market norms. It includes the management of actual performance, identification of performance gaps and agreement of actions to achieve desired performance levels. SPM not only ensures that those benefits identified in the contracting stage are delivered, but that value delivery continues for the life of the contract. As companies increasingly focus on their core competencies and outsource a greater percentage of work, their success becomes ever more dependent 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.