How do you monitor and assess a vendor's performance?

Establish measurable performance metrics

Take the time to establish performance metrics for your vendor that are specific, measurable, achievable, realistic and time-based (SMART). Consider factors such as quality, cost, customer service, reliability and delivery times.

Track performance over time

Monitor vendor performance over time, and use statistical process control (SPC) to identify trends and outliers.

Conduct periodic surveys

Regularly survey your customers, vendors and other stakeholders to assess their satisfaction with the vendor's performance.

Analyze performance reports

Analyze performance reports provided by the vendor to identify areas of improvement.

Facilitate open dialogue

Regularly meet with the vendor to review performance reports and hold discussions on how to improve.