Vendor Performance Indicator (VPI)

Vendor performance indicator is a method of evaluating suppliers to determine the indicators of job performance suppliers. There are two ways in the application of the VPI method, namely: 

1. VPI based QCDFR (A New Measure For Supplier Performance Evaluation by YP Fun and JS.Hung  1997)

   Where : 

   Q: Quality
   C: Cost
   D: Delivery
   F: Flexibility
   R: Responsiveness

2. VPI based criteria (Choy and Hartley 1996)

*. Finances 

    Financial condition

     Profitability of supplier
     Financial records discosure
     Performance awads 

*. Consistency 

    Confermance quality  

     Consistent delivery 

     Quality philosopy 

      Prommpt  response 

*. Relationship 

    Long term relationship 

     Relationship closensess 

     Communication openness 

     Reputation of integrity 

*. Flexibility 

    Product volume changes 

     Short set-up time 

     Short delivery lead time 

     Cinflict resolution 

*. Techological capability 

    Design capability 

     Technical capability 

*. Service 

    After sale support 

     Sales rep’s competence 

*. Reliability 

    Incremental improvement 

    Product liability 

*. Price 

    Low initial price

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