Getting Started Right With Supplier Performance Management

It's good to see Ariba joining Emptoris in evangelizing the need for supplier performance management (after all, there's not enough research and analysis about this critical topic in the sector). In the above linked Supply Chain Management Review article, Andy Rubinson and Jason Jablecki posit that "supply chains of midsize to large enterprises today have one glaring trait in common: uncertainty." And the main reason for this uncertainty is a lack of visibility into supplier performance and information, which supplier performance management programs can, in part, solve. But I'd also suggest to readers that SPM alone -- without a broad-based approach to managing supplier information -- is not enough to eliminate uncertainty. Still, the article is an excellent primer on the subject of supplier performance management. Even for seasoned performance management pros, the piece is worth a quick look, as the authors spell out specifically what it takes to put a successful SPM program in place. And one area in particular that stands out is dedicating specific resources to the program. After all, supplier performance management, like all of procurement, is not just about technology and process. It comes down to people.

- Jason Busch

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