Vendor scorecards are used by businesses to track vendor performance over time using relevant metrics. The vendor scorecard helps you identify performance gaps and areas for improvement, determine ROI for your supplier spend, and eliminate supply chain kinks. Due to the many other priorities businesses manage on a daily basis, most don’t think to create a vendor scorecard. However, doing so will result in an engaged and efficient vendor base that aligns with your business objectives. When used correctly, scorecards can be a huge benefit for businesses looking to stay on top of vendor performance and take corrective action if anything goes wrong. Maintaining strong supplier relationships and streamlining your expenses are possible with vendor management. It is essential to align your scorecard with vendor management best practices.
These four best practices will help you create an effective vendor scorecard.