Measuring supplier performance
2 April 2012
Q: I am developing a supplier performance index as part of a supplier improvement programme. I want to add a realistic monetary value that indicates the cost of non-conformance or poor performance for every pound spent with the supplier. At the moment I
A: Dr Paul Cousins, lecturer in strategic supply management at the School of Management, University of Bath, writes: The performance measurement literature, particularly from an accounting and operations perspective, provides a range of standard measures that could be used to indicate the cost of poor quality and/or non-conformance.
However, allocating...