Most procurement teams know which suppliers are reliable and which ones cause headaches. The trouble is proving it, and doing something about it. When delivery dates, quality issues and price changes are scattered across emails, spreadsheets and the ERP, conversations with suppliers turn into arguments about whose numbers are right. Supplier performance management gives you one shared, factual view of how each supplier is doing, so you can reward the best, support the rest and make better sourcing decisions. Here is how i2B makes it part of everyday purchasing rather than a once-a-year exercise.

Why supplier performance is hard to manage

Measuring suppliers sounds simple, but in practice it often falls apart:

• The data is in too many places. Order dates sit in the ERP, delivery notes in a goods-in folder and quality issues in someone’s inbox.
• Reviews happen too late. A spreadsheet pulled together once a year tells you about problems long after they have cost you.
• Suppliers cannot see what you see. If a supplier only learns about poor on-time delivery at a review meeting, they have had no chance to fix it.
• Scores feel subjective. Without agreed measures and a clear record, ratings can come down to opinion, which does little for the relationship.

How i2B supplier performance management works

i2B is a cloud-based Purchase-to-Pay platform that sits alongside your existing ERP. Because your purchase orders, supplier confirmations, deliveries and invoices all flow through it, the information you need to judge supplier performance is captured as part of the normal process.

Performance data captured as you trade

Every order placed through i2B builds a record. Suppliers confirm they have received each purchase order and accept, decline or request changes to dates, prices or quantities, with the full change history kept. Bar-coded delivery notes link each delivery back to its purchase order and line, and quality certificates can be attached. That gives you a factual picture of what was ordered, what was promised and what actually arrived.

Configurable vendor scorecards

i2B’s vendor scorecards let you measure suppliers on the categories that matter to your business. The scoring categories are fully configurable, so you might score on quality, delivery, cost and local factors, and give each supplier an overall rating and status. Scores can be refreshed automatically from your ERP or updated by your procurement team. We introduced the feature in i2B Vendor Scorecards.

Trends over time, not just a snapshot

i2B keeps a full history of each supplier’s scores, so you can analyse and report on performance trends. You can see whether a supplier is improving after a difficult quarter, or slipping before it becomes a serious problem, and use dashboards and performance reports to compare suppliers across your supply base.

Shared openly with suppliers through the portal

Whether you share scores with your suppliers is up to you. When you do, they can see their scorecard alongside open orders, forecasts and on-time delivery figures in the free i2B Supplier Portal. Suppliers know exactly where they stand and can act before a review, not after it. You can read more about day-to-day collaboration in Are You and Your Suppliers on the Same Page?

What better supplier performance management gives your business

When performance is measured consistently and shared openly, the benefits reach well beyond procurement:

• Fewer surprises. Late or short deliveries show up in the data early, so you can step in before production or customers are affected.
• Better conversations. Reviews start from facts both sides can see, which keeps the discussion constructive and focused on improvement.
• Smarter sourcing. When choosing who to send an RFQ to or award new business, you can see each supplier’s track record.
• Stronger relationships. Suppliers who perform well get clear recognition, and those who are struggling get early, specific feedback.
• A complete audit trail. Orders, changes, deliveries and scores are all recorded, which supports internal audit and compliance.

It starts with the right suppliers

Good performance management begins before the first order is placed. i2B’s supplier onboarding collects the information, documents and compliance checks you need from every new supplier, and keeps them up to date. We explained how in Supplier Onboarding Software: How i2B Gets New Suppliers Ready to Trade. Once suppliers are trading with you, the i2B Supplier Portal gives them self-service access to orders, deliveries and invoice status, with nothing to install.

Frequently asked questions

What is supplier performance management?

Supplier performance management is the process of measuring, reviewing and improving how well your suppliers deliver against agreed expectations, such as quality, on-time delivery and cost. It helps you reduce supply risk, resolve problems early and build better supplier relationships.

Which supplier performance KPIs can i2B measure?

i2B’s vendor scorecards are configurable, so you choose the categories. Common examples are quality, delivery, cost and local factors, along with an overall rating and status. On-time delivery figures are also available from the orders and deliveries recorded in i2B.

Can suppliers see their own scores in i2B?

Yes, if you choose to share them. Sharing is configurable, and when it is switched on suppliers can view their scorecard and delivery performance in the free i2B Supplier Portal.

Does i2B replace our ERP?

No. i2B sits alongside your existing ERP. Scores can be refreshed automatically from ERP data, and orders, deliveries and invoices flow between i2B and your ERP without a rip-and-replace project.

See i2B supplier performance management in action

If you want clearer insight into how your suppliers are performing, and a fairer way to share it with them, i2B can help. Contact us for a free demo and see how i2B scorecards and the Supplier Portal work for your business.