Supplier Performance Management
Supplier Performance Management (SPM) is a business process and methodology used to evaluate, monitor, and improve the performance of suppliers in areas such as quality, delivery, cost, and compliance. It involves setting performance metrics, collecting data, analyzing supplier performance, and implementing corrective actions or strategic decisions. This helps organizations ensure reliable supply chains, reduce risks, and optimize supplier relationships for better operational efficiency.
Developers should learn SPM when working on enterprise software, supply chain management systems, or procurement platforms to build features for tracking supplier metrics, generating performance reports, and automating evaluation workflows. It's crucial in industries like manufacturing, retail, and logistics where supplier reliability directly impacts business outcomes, enabling data-driven decisions to mitigate risks and enhance collaboration.