All 22 Vendor Management questions
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Accounts Payable & Receivable › Vendor Management

What is vendor performance management and which metrics are used?

Intermediate

Answer

Vendor performance management tracks how well suppliers deliver against expectations using metrics like on-time delivery, quality/defect rate, order accuracy, price adherence, and responsiveness. Scorecards inform sourcing decisions, contract renewals, and improvement conversations, ensuring the supplier base stays reliable and cost-effective.
Real-world example A quarterly scorecard shows a supplier slipping on on-time delivery, prompting a corrective-action plan before contract renewal.

Common follow-ups: What goes on a supplier scorecard? | How do metrics drive sourcing decisions?

Credit Control Purchase Orders & 3-Way Matching Vendor Management
All 22 Vendor Management questions