What are the most common vendor performance evaluation mistakes and how can you avoid them?

1 Lack of clear criteria

One of the most common vendor performance evaluation mistakes is not having clear and measurable criteria for assessing the vendor's performance. Without clear criteria, you may end up with subjective, inconsistent, or irrelevant evaluations that do not reflect the vendor's actual contribution to your goals and expectations. To avoid this mistake, you should define the criteria for vendor performance evaluation before you start the contract, and align them with your project scope, budget, timeline, and quality standards. You should also communicate the criteria to the vendor and ensure that they understand and agree with them.

2 No regular feedback

Another common vendor performance evaluation mistake is not providing regular and constructive feedback to the vendor. Without feedback, you may miss the opportunity to identify and address any issues, gaps, or improvements in the vendor's performance. You may also lose the trust and engagement of the vendor, who may feel that you are not interested or satisfied with their work. To avoid this mistake, you should establish a feedback mechanism that allows you to monitor and review the vendor's performance on a regular basis, such as weekly or monthly reports, meetings, or surveys. You should also use the feedback to recognize the vendor's achievements, suggest areas for improvement, and resolve any conflicts or concerns.

4 No action plan or follow-up

Another common vendor performance evaluation mistake is not having an action plan or follow-up after the evaluation. Without an action plan or follow-up, you may not be able to implement the results of the evaluation, and ensure that the vendor's performance improves or meets your expectations. You may also not be able to track the progress and impact of the evaluation, and adjust your strategy or criteria if needed. To avoid this mistake, you should have an action plan or follow-up after the evaluation, that specifies the actions, responsibilities, deadlines, and resources for improving or maintaining the vendor's performance. You should also monitor and report on the action plan or follow-up, and revisit the evaluation if necessary.

5 No vendor involvement or collaboration

Another common vendor performance evaluation mistake is not involving or collaborating with the vendor in the evaluation process. Without vendor involvement or collaboration, you may not be able to get the vendor's perspective, input, or feedback on their performance, and understand their challenges, opportunities, or suggestions. You may also not be able to build a strong and mutually beneficial relationship with the vendor, and leverage their expertise, innovation, or network. To avoid this mistake, you should involve or collaborate with the vendor in the evaluation process, and treat them as a partner rather than a supplier. You should also seek the vendor's agreement, participation, and commitment in the evaluation process, and share the results, insights, and action plan with them.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?