The ultimate intent is to identify potential issues and their root causes so that they can be resolved to everyone’s benefit as early as possible.
[2] A company that deploys effective supplier performance management ensures that a supplier’s performance meets the expectations defined in the contract and market norms.
[4] As companies increasingly focus on their core competencies and outsource a greater percentage of work, their success becomes ever more dependent on the performance of strategic suppliers.
Ultimately, the objective of SPM is to improve the performance of all parties involved in the contract and service level agreement.
A range of performance measures are recommended, which should be selected according to business need.