Supplier Performance Management (SPM)

Performance monitoring of suppliers is a fundamental part of contract management (CIPS: Performance Monitoring of Suppliers).

Information about Supplier Performance Management (SPM)

Most companies rely on timely delivery, price reduction and service quality offered by their suppliers in order to gain more profit (Cohen et al., 2008). Supplier performance directly affects the quality of the whole supply chain making it essential to establish an efficient mechanism to enhance it, accelerate its improvement and ensure the quality of services and/or products (Jiang and Bai, 2010). Through the evaluation and comparison of supplier performance, companies can ensure and maintain the best service and eliminate suppliers who fail to comply with performance requirements (Cohen et al., 2008).

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