What type of data is important to collect for effective supply management?

Collecting historical supplier performance data is crucial for effective supply management because it provides insights into how suppliers have operated over time. This type of data helps organizations evaluate the reliability, quality, and efficiency of their suppliers, enabling them to make informed decisions about future sourcing strategies, negotiate better terms, and identify potential risks.

Having a solid understanding of historical supplier performance allows procurement teams to assess trends, such as on-time delivery rates and product quality issues, which directly impact the overall supply chain effectiveness. By relying on this data, companies can establish stronger relationships with suppliers that consistently meet performance standards and make necessary adjustments with those who may require improvement.

In contrast, while employee satisfaction surveys, market trends in unrelated industries, and outside economic conditions provide valuable insights, they do not directly influence supplier performance evaluations and operational decisions in supply management as effectively as historical performance data does. Understanding supplier behavior through past performance is foundational for driving improvements and enhancing supply chain resilience.