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In this competitive market conditions, companies need their vendors that can give better values. An MIT study found that 77% of companies surveyed said 2 out of the top 3 major procurement risk factors were related to suppliers - specifically “dependency on supplier” and “supplier quality problems.” Over-dependency on a supplier and quality issues stemming from a supplier effect your organization’s product quality, brand image, production efficiency and more. Collecting basic supplier information and completing initial approval or vetting steps are the start of a successful supplier management program. However, these actions are not enough to effectively evaluate an ongoing relationship with suppliers. To realize additional value from your supply base, your organization should consider implementing a robust Vendor Performance Measurement program.

Assessing supplier performance is a difficult task. It needs a comprehensive system that can measure & develop vendors’ performance. In this training, the trainee will:

  • Learn practical methods to develop their measurement

  • Understand concepts of vendor performance measurement based on continuous improvement

  • Study & practice to develop vendor measurement

  • Develop sustainable vendor improvement programs


  • Total cost ownership

  • Develop performance measurement and

  • giving feedback to the supplier

  • Develop measurement criteria

  • Measurement methods

  • Understanding and using VPI – vendor performance index - and doing exercises with excel

  • Close loop measurement

  • How to present scorecard and dashboard after measurement

  • 5 steps to develop measurement based on commodity requirement

  • (regulatory, assurance of supply, service, cost/commercial & innovation)

  • Critical, strategic & partnership: How to segmented supplier based on risk, difficulty, current importance, alignment & future importance

  • What value or benefits we need from a supplier based on VIPER (Value, Innovation, Performance, Effectiveness & Risk) & What kind of relationship with the supplier: arm length, preferred supplier, outsourced



Interactive discussions, presentations, concept introduction, examples and exercises.

For further information and registration, please email us at

Vendor Performance Measurement: News
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