Introduction
Vendor performance management (VPM) is the monitoring and analysis of the reliability, quality, and performance of our vendors. Monitoring vendor performance allows us to improve our efficiency and profits, reduce stock levels and inventory costs, and leads to more customer satisfaction. Through effectively managing our existing suppliers, we can make informed choices regarding the retention, removal or further development of each supplier to suit the needs and requirements of our business.
Vendor chargebacks should occur when non-compliance is identified in the services/product caused by a vendor to ensure costs are recovered.
The following departments in particular play an important role in escalating vendor caused costs for the following:
Vendor scoring may take the following into consideration:
- Lead time to produce a product
- On-Time Booking
- Responsiveness to emails and other correspondence
- Product Quality
- Charging of extra Fees
- Commitment to holding Pricing
- Timeliness in sending Documents
- Ability to load Containers as requested
- Ability to handle Special Requests
- Correct Carton Labeling