One topic I am often asked to speak about is supplier evaluation.

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A question that I am virtually guaranteed to hear during my presentation is “How many metrics should I use when evaluating supplier performance?” The number I like to recommend is four. I feel that by using four metrics, you can address the most important categories of supplier performance and can create a four-quadrant dashboard.

If you use less than four metrics, you’re probably going to miss an important aspect of supplier performance in the evaluation. If you use many more (around 8 or more), you are going to dilute the value of each metric. It will be more difficult for the supplier to understand its overall performance and the priority of each metric becomes unclear.

Next Level Purchasing offers a FREE online class about supplier evaluation. I invite you to be my guest and sign up for it.

Respectfully,
Charles Dominick, C.P.M., SPSM
President
Next Level Purchasing, Inc.

Charles Dominick, SPSM, SPSM2, SPSM3

Charles Dominick, SPSM, SPSM2, SPSM3 is an internationally-recognized business expert, legendary procurement thought leader, award-winning entrepreneur, and provocative blogger. Charles founded the Next Level Purchasing Association in 2000, oversaw its incredible growth, and successfully led the organization to its acquisition by the Certitrek Group in 2016. He continues to blog and provide advisory services for the NLPA on a part-time basis as he incubates his upcoming business innovations. Charles is also the co-author of the wildly popular, groundbreaking book, "The Procurement Game Plan: Winning Strategies & Techniques For Supply Management Professionals."

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