Vendor Performance Management Tool
Vendor performance management involves monitoring and analysing the performance of your organisation’s vendors. Benefits often associated with it include improved efficiency, reduced inventory costs as well as increased customer satisfaction.
Tracking and managing vendor performance allows you to filter through your list of vendors for reliable suppliers. A list of all these vendors, with compiled contact information and other relevant details, can facilitate the purchase process thus improving efficiency. However, it is worth noting that these vendors should still be monitored to ensure that their performance levels do not deteriorate. It is important to constantly evaluate vendors to maintain a certain level of performance.
Although a vendor performance management tool involves tracking the quality of the product or service provided, it should not be the sole usage. One should also utilise the tool to strive to improve the relationship with one’s vendors. Any good performances should be noted and communicated to the vendor, with the goal of getting them to maintain their performance levels. Likewise, any bad performances have to be immediately responded with corrective actions.
To start managing your vendor performance, it is necessary to have a database containing the following for each vendor:
- Contact information
- Last review date
- Next review date
This ensures that every vendor’s performances are up-to-date. Also, a supplier corrective action report is required for any unsatisfactory vendor performances so that their performances can be rectified. A free resource you can download to start managing your vendor performance can be found here.
Alternatively, an eProcurement software, such as ThunderQuote Enterprise, can automate all these processes while offering additional vendor performance visibility across departments. Find out more here.