Final answer:
The performance of key suppliers and business partners is commonly evaluated using balanced scorecards, which offer a comprehensive view by incorporating multiple performance metrics beyond just financial figures.
Step-by-step explanation:
Evaluating the performance of key suppliers and business partners typically involves examining various aspects of their operations and contributions to a business. One common method for this evaluation is the use of the Balanced Scorecards, which focuses on multiple dimensions of performance rather than just financial measures. The balanced scorecard approach considers multiple perspectives: financial, customer, internal business processes, and learning and growth indicators. While financial statements, benchmarking, and customer surveys might provide insights into specific areas, the balanced scorecard allows for a more holistic view of the partner's contribution to the company's strategic objectives.
Figure 13.10 (as provided in the reference) mentions a 360-degree performance appraisal, which is slightly different as it focuses on employee performance from various viewpoints, including supervisors, peers, direct reports, customers, and the employee themselves. When it comes to supplier performance, similar multifaceted evaluation techniques can be applied to determine effectiveness, efficiency, and overall quality of service or goods provided.
Suppliers and business partners are commonly assessed using balanced scorecards to ensure a broad view of their performance is captured, considering all critical areas of impact on the business.