Supplier performance management is the process of systematically evaluating and managing the performance of suppliers in terms of quality, delivery, cost, and other relevant factors. It involves establishing performance metrics, collecting and analyzing data, providing feedback to suppliers, and collaborating on improvement plans.

Supplier performance management enables organizations to identify high-performing suppliers, address performance gaps, mitigate risks, foster collaboration, and drive continuous improvement. It helps strengthen supplier relationships, optimize supply chain operations, ensure compliance with contractual agreements, and ultimately enhance overall organizational performance and customer satisfaction.