Give some examples of other performance indicators that can be used to evaluate the performance of suppliers and describe how they relate to the SPI. Discuss how higher or lower performance along the chosen indicators can translate into higher and lower SPI performance.

 

Answer rating: 100% (QA)

Supplier Performance Index SPI Overview The Supplier Performance Index SPI is a comprehensive metric used to evaluate the performance of suppliers typically combining various key performance indicators KPIs to arrive at a single score The SPI can cover several factors such as cost quality delivery and other relevant supplier attributes It is a tool that helps organizations gauge how well their suppliers meet their needs and expectations Examples of Other Performance Indicators Here are some examples of other performance indicators that can be used to evaluate the performance of suppliers and how they relate to the SPI 1 Quality of GoodsServices This measures the degree to which the suppliers products or services meet defined quality standards Its often quantified through defect rates return rates or customer complaints Higher quality usually leads to higher SPI performance because it indicates reliability and reduces the costs associated with poor quality such as rework returns and customer dissatisfaction 2 OnTime Delivery This indicator ... View the full answer