Build A Framework To Measure SVM Performance

Many sourcing and vendor management (SVM) organizations know they need to identify the right metrics to prove the value of their work. Yet finding the right metrics is a challenge: Every SVM organization is different, and the correct metrics will vary based on each business situation. In seeking to fix this problem, SVM professionals encounter a myriad of metrics that blur the line between their own performance, vendor performance, and value to the business. Forrester has generated six key categories to help clarify those key performance indicator (KPI) groupings and help SVM professionals monitor and measure their performance. To make these metrics useful, SVM professionals should map their organization's mandate to its metrics, creating relevant metrics categories that include operational effectiveness, business alignment, spend, risk management, vendor's contractual performance, and innovation.