Design of supplier performance measurement systems: experiences from an action research

The evaluation of suppliers’ performance is important for organizations because of the imperative role they play in the supply chains and the importance that purchasing functions have due to the outsourcing of activities which are not part of the company’s know-how. There is a need to work on the identification of practical problems concerning the design and implementation of supplier performance measurement systems (SPMS). This paper presents the most important factors in designing and implementing such systems through an action research in a multinational media enterprise. In addition to the details of the method and results of its application, the paper presents an analysis of processes and attributes that define the design of the proposed system. The authors aim to contribute to the academic literature in providing practical issues regarding SPMS.

Performance measurement systems; Supply chain; Suppliers; Supplier performance evaluation