SUPPLIER MANAGEMENT: A FRAMEWORK FOR SELECTION, EVALUATION AND PERFORMANCE

Supplier performance management despite being a widely researched topic, companies are still struggling to set supplier strategies using key metrics. Most companies track too many metrics or fail to measure key variables and even if they do, they fail to execute the process consistently. If they get through these steps, they then fail to communicate their message to suppliers effectively. This leads to a strain in the supplier and company relationship. A simple multi-criteria driven holistic framework developed by industry input is critical to the success of supplier management. A supplier management framework using EIGHT main-criteria categories (convenience,customer service, financial, growth, innovation, inventory, quality, risk), 32 (between 2 and 7 in each category) metrics and 4 ranks (A, B, C, D) is presented in this paper to assist companies with their supplier management process.