Supplier Relationship Performance Measurement Model: a Case Study in a Service Company

Abstract

The effectiveness of supply chain performance is strongly influenced by the close relationship between the company and its suppliers. A strong relationship between suppliers and buyers will have a positive impact, especially in achieving company targets. this relationship needs to be measured and monitored equally by the buyer and supplier. The supplier relationship performance measurement (SRPM) model is a model to measure the performance of relationships between companies and their suppliers, which is still rarely done, especially for the service industry. Therefore, in this study SRPM models and measurements for the service industry will be proposed. a case study conducted at one of the consulting companies in Indonesia. SRPM indicators are identified from literature studies and interviews with experts. From these results 18 valid SRPM model indicators were obtained and then SRPM measurements were carried out to find out which SRPM indicators needed improvement. Measurements were taken both at the company (buyer) and the supplier. From the measurement results it is found that the indicators of responsiveness and services have the highest value in the relationship between buyers and suppliers. The next research opportunity is how to improve the relationship between buyer-supplier strategies in the SRPM model.