Ad hoc supply chain management is not adequate anymore because of the broad range of risks in the market today. Finding meaningful measurements helps keep the supply chain aligned with strategic goals.
By Sherry Bloom

Finding and contracting with suppliers can be a long-drawn-out process as procurement negotiates with a variety of internal departments and legal. Signing the supplier contract feels good, but the process now goes to the next level – performance.

Managing supplier relationships is a critical business process because supplier performance has a direct impact on the ability of the company to remain sustainable, competitive and strategic. Responding to supplier issues after the fact, or focusing only on cost, puts the company at risk.

Performance measurements are tools for ensuring suppliers stay on track and bring continuous improvement. They require setting goals, establishing benchmarks, setting performance requirements, ...