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Supplier performance management (SPM) is a business practice which extends supplier evaluation,[1] and is used to measure, analyze, and manage the performance of a supplier in an effort to cut costs, alleviate risks, and drive continuous improvement. It is a function often associated with third party management. The ultimate intent is to identify potential issues and their root causes so that they can be resolved to everyone’s benefit as early as possible. It is a similar term to vendor performance management, with the terms "vendor" and "supplier" being interchangeable.[2]
^Gordon, S., "Seven Steps to Measure Supplier Performance", Quality Progress, August 2005.
^Coution, Philippe. "Vendor vs. Supplier". BizToolCase.
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