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Especially where outsourcing is employed, it serves as a critical reality check as to whether strategic targets are being achieved. It is also essential in promoting supplier compliance with agreed performance targets.
Assessment activity should be properly recorded so that a periodic audit of the process can be carried out to demonstrate whether that assessment was carried out fairly. For obvious reasons, customers are concerned about the quality of service they are receiving. In many cases, however, an anecdotal approach is taken towards this important question.
An assessment should take into account the scope and nature of products purchased from a supplier, the particular requirements to which the supplier was subject, the circumstances in which the supply was made and other relevant or extenuating circumstances. While the preparation of performance reports should not degenerate into a complaint driven system, instances of dissatisfaction should be catalogued and classified to generate specific areas of concern.
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