KPIs: Measuring Indirect Material Suppliers and Service Providers

Author(s):

Karen M. Fedele, C.P.M.
Karen M. Fedele, C.P.M., Category Manager, The Gillette Company, 617.421.8382, Karen_Fedele@gillette.com
Tim Dolan, C.P.M.
Tim Dolan, C.P.M., Manager, Strategic Sourcing and Supplier Diversity, 617.421.7516, Tim_Dolan@gillette.com

89th Annual International Conference Proceedings - 2004 - Philadelphia, PA

Abstract

Key Performance Indicators (KPIs) have traditionally been used to measure and manage direct material suppliers. Direct materials, by their very nature, lend themselves more easily to KPIs – direct materials are more tangible and can be measured fairly easily. Supply chain professionals managing indirect material suppliers and service providers are challenged with developing KPIs that specifically address the differences associated with these suppliers.