It is always beneficial to have a Vendor Performance Analysis performed periodically. By measuring and monitoring supplier performance periodically, companies can realize some significant benefits. Below are some of the key benefits of an effective supplier qualification program.
- Visibility – Vendor Performance Analysis provides better visibility into the suppliers’ past and current performances. It can be cost-effective in forecasting and avoiding any supply chain disruptions.
- Data-Driven Decision Making – Vendor Performance Analysis gives various insights to drive data-driven decision-making. It facilitates enriched data points that can help to track and improve the buyer-supplier collaboration.
- Maintaining Standards – Vendor Performance Analysis facilitates periodic measurement, reporting, and analysis of quality provided by the suppliers. It helps in monitoring suppliers’ performances and eliminating low-performing suppliers.
- Collaboration – Vendor Performance Analysis enhances buyer-supplier collaboration. Periodic reviews and feedbacks help in establishing precise requirements from both ends. It helps to build trust and mutual goals.
- Categorization and Ranking – Vendor Performance Analysis helps to evaluate each supplier using pre-defined criteria. Organizations can get in-depth visibility in suppliers’ performance and rank them based on their ability to meet and fulfill business expectations. The categorization and ranking of suppliers can strengthen the decision-making process of any supply chain organization.
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