Supplier Performance Index
Category: Strategic
Measures the overall performance of suppliers based on quality, delivery, and cost criteria.
What it Measures ?
Evaluates supplier reliability based on quality and delivery.
Relevant StakeHolders
Procurement Head, Vendor Manager
Why it Matters ?
Enhances supplier relationship and performance.
In-depth Use Case / Real-world Example
A company manufacturing automotive parts calculates Supplier Performance Index by evaluating suppliers on multiple factors such as quality (defect rates), delivery performance (on-time delivery), and cost competitiveness. For example, if a supplier consistently delivers high-quality components on time and at competitive prices, they score well on the index, indicating strong supplier performance.
Sample Formula
On-Time Delivery, Quality Score, and Responsiveness