How to select, use and communicate supplier performance measures ?

A firm should focus on the attributes that it finds most important. Some attributes are easy to measure while others are not

• Customer service• Delivery commitments• Reliability and responsiveness• Resource savings (hard and soft)

depending on type of industry delivering to a retail chain is not the same like spares going to make car assembly or as O&M spares to heavy industry, but any how being able to respond fast and to adapt your delivery , maintain the supply rate and  respect the schedule , being able to do the service needed and deliver competitive price , HSE measures compliance are main items that can elaborated in KPI 

Supplier Performance Rating = Receipt + Quality + Service

By making a quarterly appraisal for all of suppliers that you purchased from them regarding delivery is it on time & quantity is it in full & quality is it according to your standards or not & give each one a percentage to be taking in your consideration next deal

Suppliers are now being considered as " strategic partners" in any professional organization. They are seen as key role players in the organizations growth.

In order to select supplier Performance measures , one must develop appropriate KPIs. Supplier KPIs should be developed keeping in view the overall Strategic goal of the organization.

KPIs are derived from the functions coming after this functions or from the internal customers , for example, service level for supplier of "Make to Stock " product will be different from the one supplier who provides material for "make to order" product. 

So, it depends what is your overall strategic objective and what is the part you require from the suppliers to play in achieving this objective