Supplier performance is critical for purchasing decisions and supply chain risk. Which supplier has high on-time delivery, which has quality or delay issues, must be tracked with data.
Performance metrics: Total spend, order/delivery count, average lead time, and on-time delivery rate are calculated per supplier. These metrics are fed from purchasing and goods receipt data.
Scorecard: Metrics can be combined into a single scorecard with weighted scoring. Scorecards make supplier ranking and selection easier.