Measuring Performance Beyond the Company Boundaries: More a Need Than a Challenge

Abstract

In modern companies, measuring and control suppliers’ performance is a difficult - but fundamental - task. The adoption of inappropriate supplier performance measurement systems can generate undesired supplier behaviors, that can negatively affect buyer (and supply chain) performance. This paper reviews and addresses the main challenges connected to supplier performance management activities, and proposes a framework – the Strategy, Technology, and Approach model – that prescribes the main aspects to be considered for an effective design, use, implementation, and review of these systems.

Keywords: supply chain management, procurement, performance measurement, supplier