Performance feedback is a method of assessing the performance of suppliers and buyers and is carried out during or following the execution of a contract.
Performance feedback as part of an industry standard approach is aimed at identifying and understanding actual performance, ultimately leading to improved supply chain activities. It allows both the buyer and the supplier to understand and share information about each other`s performance in achieving their deliverables.
A performance feedback exercise will consider a number of business characteristic , each supplier or buyer will rate each other on features such as product quality, service quality, project management, documentation, planning and delivery, supplier management, tender process, bid clarification, purchase order/contract documents, quality control, change control, business ethics, organisation, facilities, customer interface and post delivery experience.
Performance feedback benefits the Supplier and Buyers as follows:
Suppliers
Helps suppliers understand how the clients view their performance on a contract.
Helps suppliers to build improved relationship with their clients.
Helps suppliers highlight business areas where improvement and review may be required, using their own performance record and benchmarking as appropiate.
Serves as a communication tool , both internally and as part of their marketing effort.
Buyers
Helps buyers to gain knowledge of the track record of a supplier who is new to them or acquire a wider perspective of those they already have.
Helps buyers provide basis for evaluation of companies suitable for a particular job.
Highlights suppliers` strength and weaknesses and identifies areas where they will need additional support
Help buyers build improved relationship with their suppliers.
There are two main performance feedback reports
Supplier Performance Report - Measures supplier performance during the provision of product and / or services to clients
Purchaser Performance Report - Measures how well purchasers support suppliers in providing products and / or services.