Vendor Scorecarding: Taking Costs Out Of The Supply Chain

By Jim Frome, SPS Commerce

One technique to measure and improve supplier performance is the use of vendor scorecards — a set of tools and capabilities used to measure, analyze, and manage the performance of vendors in the supply chain. Often the key metrics that are implemented in scorecarding are closely aligned to the retail organization's strategic objectives and include on-time delivery, fill rates, lead times, and other items that can improve the overall margins of the supply chain.