Vendor Performance Analysis is a practice of monitoring and analyzing the performance and reliability of the vendors in an organization. Vendor performance monitoring helps in improving the efficiency and profits for the procuring side of an organization.
This Analysis ensures that a supplier’s performance meets the expectations defined in the service-level agreement and is as per the market standards. It helps to manage supplier’s current performance, identify performance gaps, and mutually decide the actions to achieve desired performance level.
Different parameters like financial health, operational performance, contract performance, business processes, year-on-year price changes, etc., are evaluated in this analysis. Following are some of the crucial KPIs for Vendor Performance Analysis:
2. Risk Management
3. Delivery Performance
Try out the free demo for Vendor Performance Analysis using Microsoft Power BI here.