Joint performance appraisal

Joint performance appraisal is a relational, collaborative approach to performance measurement and management, in which the buyer assesses the supplier‘s performance and the suppliers assess the buyer‘s performance.

The objective of this approach is to:

1. Recognize the impact of the buyer side processes and behaviours (e.g. adversarial supplier relationships, price focused competition) on the performance efficiency and sustainability of the supply chain
2. Identify problems within the buyer supplier relationships that may impair the performance of either party, with a view to collaborating problem solution.
3. Support long-term value adding relationships by ensuring mutual advantage and the equitable sharing of relationship risk and rewards.
4. Encourage collaboration and continuous measurable in supply chain performance and relationship satisfaction.

Joint appraisal measures are typically based on the following themes:

1. Shared mutual objectives.
2. Compatible benefits to both parties.
3. Agreed problem solving methods.
4. Shared risks, according to who is best equipped to manage them.
5. Continuous measurable improvement
6. Proactive managerial relationships.