Here's how you can track key metrics when evaluating vendor performance as an intern.

1 Quality Score

Quality is paramount when assessing vendor performance. You should monitor the quality score, which reflects the percentage of products or services meeting your company's standards. A high quality score indicates a reliable vendor, one that consistently delivers products or services that pass quality checks. Conversely, a low score may signal the need for a vendor review or even a search for new suppliers. Keep in mind that quality issues can impact customer satisfaction and the company's reputation, so this metric should never be overlooked.

3 Service Level

Service level agreements (SLAs) outline the expected performance and service standards from a vendor. You should monitor how well vendors are meeting these SLAs. A vendor consistently meeting or exceeding SLA terms demonstrates a commitment to service and can be a strong ally. If SLAs are frequently missed, it can be a red flag indicating potential issues with the vendor's capacity or management. Tracking this will inform decisions on whether to continue, renegotiate, or terminate the relationship.

4 Cost Management

Cost is a straightforward but vital metric. Track how vendors' pricing compares with industry standards and how it aligns with your company's budget. It's not just about the initial cost but also understanding the total cost of ownership, which includes maintenance, operation, and potential downtime costs. Effective cost management helps in making informed decisions about which vendors provide the best value for money and where there might be room for negotiation to reduce expenses.

5 Support Quality

The level of support provided by a vendor is critical, especially when issues arise. Assess the responsiveness and effectiveness of a vendor's customer support. A vendor with excellent support can minimize disruptions to your business operations, while poor support can lead to prolonged problems and increased costs. Tracking this metric allows you to gauge the reliability of a vendor in crisis situations and can influence future vendor selection or negotiation processes.

6 Innovation Contribution

Lastly, consider how much a vendor contributes to innovation within your company. A vendor that offers cutting-edge products or processes can give your company a competitive edge. Evaluate if they are proactive in suggesting improvements or if they keep pace with industry advancements. A vendor that drives innovation can be a strategic partner, helping your company stay ahead in the market. Tracking this metric can highlight which vendors are truly invested in your company's growth and success.