ABSTRACT
An organization’s values and beliefs regarding suppliers impact how suppliers are treated and how their performance is monitored. Organizations make the same mistakes when measuring supplier performance that they do when measuring other areas of performance. The problem with measuring process variables for a process that is far from being a hard science, like selling, is that the process measures might look great, but the output measures could look terrible. Process measures are given a very low weight in this report card, because doing good public relations work is hardly an exact science. Suppliers are critical to most organizations, and many organizations do a very poor job of measuring supplier performance. Price or perceived value is almost always one of the most important dimensions to measure when evaluating supplier performance. Process measures are given a very low weight in this report card, because doing good public relations work is hardly an exact science.
