Vendor Performance
KPI-based supplier rating and scorecards.
The Strategic Value of Scorecards
A Vendor Performance Scorecard turns subjective supplier relationships into objective, data-driven partnerships. In modern supply chains, resilience is defined not by the lowest price, but by the highest level of reliability and quality compliance across the entire vendor ecosystem.
Primary KPI Framework:
- OTIF (On-Time In-Full): The single most critical metric in logistics, measuring a supplier's ability to meet delivery windows without quantity variances.
- Cost Management: Tracks how the supplier's pricing aligns with broader market indices and internal procurement targets.
Regular scorecard reviews allow procurement managers to identify 'Value Leaks' early and build Corrective Action Plans (CAP) for underperforming segments. Elite suppliers (90%+) are typically integrated into deeper strategic planning cycles, ensuring long-term supply continuity.