Measuring supplier performance relies on specific criteria that vary depending on your company's needs and objectives. However, there are key indicators commonly used to assess supplier performance, including:
Several methods can be used to evaluate and rate supplier performance, including the following:
Continuous evaluation and performance monitoring
Brands can define specific key performance indicators and receive alerts in case of deviations. This allows for continuous assessment of quality, on-time deliveries, and other critical aspects of the supplier relationship.
Management tools, such as supplier portals or control towers, offer customizable dashboards for monitoring key performance indicators (KPIs) throughout your supply chain. Based on operational data from your various suppliers, these tools support decision-making by enabling the implementation of priority actions when a change request is made. This allows for effective risk management and proactive planning.
Here are some examples of indicators that can be monitored:
These indicators not only improve performance but also enable a proactive approach to risk prevention and inventory reduction. By monitoring these elements, brands can quickly adjust their strategy and approach to maintain high service levels and ensure customer satisfaction.
Brands can support suppliers in their continuous improvement efforts and encourage them to evolve their practices to be more ethical and responsible.
Transparent communication with your suppliers is the cornerstone of maintaining your relationships; here are a few reasons why:
Thanks to a platform, an online control tower allows everyone to share information efficiently on a common repository, eliminating the need for email exchanges and the storage of attachments. This type of tool brings together stakeholders in the supply chain, providing them with a shared communication tool.
This network-based approach strengthens collaboration among employees, keeping them informed and enabling them to make effective decisions. A platform provides the tools for an ecosystem in which suppliers at various stages of manufacturing, carriers, quality testing laboratories, and different brand departments—production, quality, logistics, and marketing—interact.
Online collaboration features between suppliers and brands enable efficient communication and collaboration, such as data exchange, validation or change requests, document sharing… Everything is centralized on a single platform, thus reducing delays associated with fragmented communications.
