Here's how you can tackle the challenges of evaluating vendor performance in your career.

When evaluating a vendor, there are multiple criteria which needs to be considered. ? Quality & Service o Quality of Goods & Service o On-time delivery (Set percentage) o SLA Compliance ? Innovation & Continuous Improvement o Collaboration & Innovation

Define Clear Metrics : Quality: Measure the quality of goods or services provided by the vendor. This can include defect rates, adherence to specifications, and consistency in meeting quality standards. Delivery Performance: Assess the vendor’s ability to meet deadlines. Key metrics can include on-time delivery rate, lead times, and the frequency of delays. Cost Management: Evaluate whether the vendor is providing competitive pricing and managing costs effectively. Metrics can include price competitiveness, cost-saving initiatives, and adherence to budget.

Maintain an open line of communication with vendors to provide constructive feedback and discuss areas for improvement. Also, work collaboratively with vendors to solve issues and improve processes, fostering a partnership rather than a transactional relationship.

Evaluating Vendor performance: - Service review with vendor along with scorecard - Cost evaluation Vs quality delivered - Vendor Compliance and Feedback mechanism

In this phase, the proper governance is essential to unify the collected data, having clear structure of what data or information required to measure the performance. Don't collect unnecessary data, or unrelated information, or data that can't be processed and transformed into a useful metrics to be evaluated.

Consistent data collection is key to understanding vendor performance over time. By regularly tracking how vendors measure up against your established metrics, you can identify patterns, anticipate issues, and make informed decisions. This data-driven approach ensures that performance evaluations are objective and grounded in real-world results, ultimately leading to stronger partnerships.

- Suggest you never give 100% of anything to just one vendor- try for a 90%/10% split if possible. - Resist temptation to make it only about performance metrics. Think about how hard or easy it is to work with the vendor/partner. Who is genuinely concered about how things are going, overall, or are they just concerned when a new bid is coming out. - Finally, how much does your vendor care about what you need to do to be succcessful, and how much do they care about business results that they promised. Do they review those with you monthly?

Vendor scorecard should include vendors rating based on various parameters, such as but not limited to Fraud, customer complaints, SLA ratings, audit issues etc.

The metrics evaluation isn't one time job. It's a continuous process part of continuous performance improvement. It's essential to realize as a decision maker or organizational strategic to set the roadmap of the current vendor performance improvement plans where it should be considering time, cost, quality, and business growth. All are correlated and integrating together in harmony.

The findings during the evaluation process is essential to be shared with all stakeholders in a transparent environment for review and analyze the gap which results in impacting the deliverables metrics or what was the positive impact which reflects positively on the performance.

Ao conversar com o parceiro sobre desempenho, seja claro, específico e também colaborativo. A colabora??o desperta habilidades de empatia e confian?a, fortalecendo a rela??o e flexibilizando as mudan?as de processos.

Based on the review results, the action plan is set with assigned rules and action owner and agreeing on time-line to achieve these action plans. The monitoring of the performance metrics during the journey of the actions implementation is essential to make sure that there's a positive impact and the progress is matching the time-line of the required improvement.