As companies move beyond trying to squeeze costs out of their supply chains, supplier performance becomes critical. Ask yourself are we measuring our suppliers effectively? Are the measures driving ongoing improvement and continuing reductions in total cost?

Ongoing measurement of your key suppliers can deliver multiple benefits to the organization. Conversely, those that fail to measure run the risk of ongoing quality problems, service deficiencies, and cost overruns that can eat into bottom-line profits and damage competitive positioning in the market.