9 Measuring Supplier Performance
Many organizations spend more money buying goods and services from suppliers than they spend running their own parts of the business. A chemical company I worked with spends 66 cents out of every dollar on suppliers. A company in the beef or pork business spends about 80 to 90 cents of every dollar it spends buying pigs or cows. Suppliers are critical to most organizations, and many organizations do a very poor job of measuring supplier performance. In this chapter, we’ll talk about some of the mistakes companies make when tracking supplier performance and provide you with some guidelines to do a better job of tracking how your suppliers perform.
VALUES AND BELIEFS REGARDING SUPPLIERS
An organization’s values ...
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