Suppliers can be a great help. For example, there are probably areas of expertise that you need, but you don\u2019t have them. It\u2019s logical to look elsewhere for them, i.e., to find someone who has them. On the other side, if your suppliers are not performing well, that means additional problems for you and the services you provide. But, how can you know for sure whether they are fulfilling their obligations, or not?<\/p>\n
As in many other cases, measuring is the answer. Supplier performance<\/a>\u00a0is the thing to measure, in this case. So, based on monitoring and measuring of a supplier\u2019s performance, you will create a supplier performance report. ITIL recommendations and ISO 20000 sets direct requirements regarding this report. Let\u2019s see some more details.<\/p>\n Why is it important to monitor a supplier\u2019s performance, anyway? You selected your supplier based on the business objectives you wanted to achieve. Now you want to be sure that your supplier is fulfilling their obligation and supporting the agreed business objectives \u2013 so, you need to evaluate that supplier\u2019s performance. By doing so you will learn two things:<\/p>\n And, imagine that you are responsible, in the eyes of your management, for the suppliers<\/a> and their performance. Keeping all relevant information in your head might work, if you only have one or two suppliers or if you don\u2019t use their services often. But, when the number of suppliers increases \u2013 I don\u2019t suggest trying to work that way. You need to manage your suppliers, meaning that you must define the relationship (Supplier Contact or Underpinning Contract) and know how they are doing, by starting a report on the supplier\u2019s performance.The importance<\/h2>\n
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