How can you ensure objective and fair vendor performance measurement?

1 Define clear and measurable goals

Before you start working with a vendor, you should define clear and measurable goals for the project or service they will deliver. These goals should be aligned with your marketing strategy and objectives, and should be specific, realistic, and time-bound. You should also communicate these goals to the vendor and agree on how they will be tracked and reported. This way, you will have a common understanding of what success looks like and how it will be measured.

2 Use a balanced scorecard approach

A balanced scorecard is a tool that helps you evaluate the performance of a vendor across four dimensions: financial, customer, internal process, and learning and growth. By using a balanced scorecard, you can assess not only the outcomes of the vendor's work, but also the inputs, processes, and capabilities that contribute to those outcomes. For example, you can measure the vendor's cost, quality, timeliness, innovation, satisfaction, compliance, and improvement. A balanced scorecard can help you identify the strengths and weaknesses of the vendor, and the areas where they need to improve.

3 Collect data from multiple sources

To ensure that your vendor performance measurement is objective and fair, you should collect data from multiple sources and perspectives. You should not rely on your own subjective opinion or on the vendor's self-reporting. Instead, you should use a mix of quantitative and qualitative data, such as surveys, interviews, reviews, ratings, benchmarks, analytics, and audits. You should also involve different stakeholders, such as your team members, customers, partners, and other vendors. By collecting data from multiple sources, you can get a more comprehensive and accurate picture of the vendor's performance.

4 Provide timely and constructive feedback

Once you have collected and analyzed the data, you should provide timely and constructive feedback to the vendor. You should not wait until the end of the project or contract to share your feedback. Instead, you should provide regular and ongoing feedback, preferably in person or via video call. You should also follow the SMART criteria for feedback: specific, measurable, achievable, relevant, and timely. You should highlight the positive aspects of the vendor's performance, as well as the areas where they need to improve. You should also suggest concrete actions and solutions that the vendor can take to address the issues and achieve the goals.

5 Establish a feedback loop

Finally, you should establish a feedback loop with the vendor, where you monitor and evaluate the impact of your feedback and their actions. You should track the progress and results of the vendor's improvement efforts, and provide recognition and rewards for their achievements. You should also solicit feedback from the vendor on your own performance and expectations, and adjust them accordingly. By establishing a feedback loop, you can foster a collaborative and trusting relationship with the vendor, and ensure continuous improvement and alignment.