Supplier performance management (SPM) is a process for assessing, measuring, and improving the performance of suppliers. The goal of SPM is to ensure that suppliers meet or exceed the expectations of the organization in terms of quality, cost, delivery, and other factors.
There are a number of different approaches to supplier performance management. One common approach is to set up a scorecard system, in which suppliers are rated on a variety of factors. Another approach is to conduct regular audits of supplier facilities and operations.
In order to be effective, supplier performance management must be supported by top management and well-defined policies and procedures. It should also be integrated into the organization’s overall business strategy.