How can supplier performance be measured?

The most common aspects of performance that are measured are quality, service and price. What can you put goals and numbers to that will tell you how the supplier is performing in each of these areas?

Decide what the most critical aspects are to you, is it an item that you can get from a number of different suppliers? Is price, or on-time delivery the deciding factor? Or is it an item or material that can vary in quality and will affect the quality of your product? In this case, the supplier with the most consistent quality may be the best source, regardless of the price. Measure what is most important about what is being supplied.