Supplier Performance Measurement System Design in Manufacturing Industry

The poor performance of suppliers causes unnecessary costs for the buying company. To support supplier management and supplier performance management, a supplier perfor-mance measurement system should be built. Previous research on supplier performance measurement systems focuses on what is done in companies, leaving out the optimal way to design a supplier performance measurement system. The topic was approached through a literature review and interviews. The interviews were analysed using the Gioia methodolo-gy. The results revealed that in a large organization, a supplier performance measurement system should enable the sharing of information to different parts of the company, so that the supplier's performance can be reliably evaluated. This thesis presents a design frame-work that can be used to design a supplier performance measurement system.