How to Rate Vendor Performance
Most companies are less than satisfied with their system to rate vendor performance — if they even have a system at all. Many of them see one or two things go wrong, and then jump to the conclusion that it’s really an indication of a larger problem.
Obviously, you need an objective means to measure and rate vendor performance. That’s where the vendor scorecard comes in.
Just as it’s important to get regular feedback from your customer base, you should be providing the same sort of feedback to your vendors.
- Where does the vendor stand in price for services?
- Does the vendor offer suggestions for cost reductions?
- What about deliveries? Are they generally on time?
When you’re unhappy with your vendor, and not giving them the opportunity to improve, you’re doing a disservice to both of you.
Why Don’t You Rate Vendor Performance?
There are all too many reasons people don’t rate their vendor’s performance. Through research conducted by Interlog USA’s marketing department, we have found that the number one reason is fear. This isn’t meant as an accusation or offense to those who haven’t rated their vendor on key performance measures. But the truth is that most people are afraid to expose their vendor’s lack of quality performance. Secondly, many businesses are scared of the actions that must follow a negative outcome from a vendor performance report. In the instance that a vendor comes out with a low score on our Vendor Scorecard, it may be the prime opportunity to strike up conversations with your vendor’s competitors to discover what you may be missing.
Get the Free Vendor Scorecard
If you are curious as to how your vendor ranks in relation to both your standards as well as the competition, make sure to download our Vendor Scorecard here: InterlogUSAVendor_Scorecard. The tool provides an easy and convenient way to rate vendor performance.
If you are surprised by the results, reach out to us and we’d be happy to chat about your vendor’s score.