Did you know that there are over 565,000 manufacturers in the USA?

If you are in the manufacturing sector or have any kind of business you will know that supply chain performance is crucial to the success of your business.

How can you ensure that your supplier performance is timely and efficient? How can you evaluate how you can improve it? Why not take a minute to read our in-depth article and find out.


When evaluating the efficiency of a supplier, the first marker you will want to set is performance.

Performance is the overall benefit that the supplier brings to your company. It is more than simply cost-effectiveness. It involves both punctuality of service and the supplier’s contribution to your production of quality products. Does this company do anything which negatively affects my company’s reputation and performance?

If you are interested in learning more about supplier performance markers, why not read on here.


Next, move on to examining the quality of the individual services that the company provides. This is more than just the quality of the goods or materials that they give to your company. It includes customer service, responsiveness, and experience in the field of expertise.

You will notice that we have not discussed pricing yet. While appropriate pricing is important, a company that can give you quality goods in a punctual and trustworthy fashion is more important.


Following this, it is important to look back at the records of each supplier. Have there been any outstandingly positive or negative events associated with this company?

A negative event could involve the late provision of a vital material or deviation from agreed terms. Positive events could include improvements to product quality and communication. Even a lack of negative events can be seen as a positive.

Factoring in historical events when evaluating supplier performance can give you the big picture.


Billing is more than simply punctual handling of payments. It is also the providing of documents that will allow you to be compliant with local authorities.

We live in the most connected world in history. You may even be part of a global supply chain meaning that your supplier may be half-way across the world. However, they should understand your local needs when it comes to bookkeeping and paperwork.

In addition to this, any delays in processing payments or breakdowns in communication should have been recorded. This too will give you the overall picture as to whether your supplier is proving the performance that you need.

Improving Supplier Performance and Much More

If you are in the manufacturing industry, you are no doubt constantly looking to improve the efficiency of your supply chain. Understanding how you can evaluate and measure supplier performance is a key factor in doing this.

By following these simple principles, you may be able to detect ways to lower cost or improve the quality or time of materials or products.

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