Vendor Performance Evaluation: What Metrics Do You Use and How Do You Handle Extremes?

Hi Seniors, I am in a vendor management role, and recently, the team decided to conduct performance evaluations for our current 30 vendors (manpower suppliers). Kindly suggest some good parameters to gauge their performance.

Steps to Take for Vendor Performance Evaluation

Additionally, please suggest steps to take if vendors are either performing extremely well or extremely poorly.

Thanks in advance.

Don't you have a vendor evaluation form when making purchases from three vendors? You can evaluate them using the criteria provided in the form as a basis for your vendor performance appraisal. Consider parameters such as:

- Delivery efficiency
- Payment cycle
- Response time
- Quality of the product
- After-service follow-up for machinery
- Maintenance

By utilizing these criteria, you can effectively assess and manage vendor performance.

Hi Ranjitha,

I am also conducting vendor performance analysis. I am evaluating them based on the criteria mentioned below:

1. % Hike
2. Level of hiring (Senior vs. Junior Positions)
3. Type of Hiring (Niche vs. Generic)
4. Joining Ratio
5. Onboarding Time
6. Selection Ratio
7. Time to Respond
8. In case an SLA is set - % of adherence to SLA
9. Position Shared vs. Position Worked On

Regards,
Ankur Vachher