What Is Vendor Performance Analysis

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Introduction Vendor Performance analysis is the formal process of running supplier dealings, measuring performance and driving continuous improvement with a company’s strategic suppliers. This tool was developed in order to measure, analyze, and manage an organizations performance with effort to improve the relationships with suppliers, reduce cost, alleviate risk and drive continuous improvement.
1.1 Need for the study The companies can get good quality of raw materials on time with a nominal price by evaluating the vendors. The study is expected to help the companies to improve its output in terms of quality, delivery time and cost in Vendor Management.

1.2 Objectives
• To understand the performance of various vendors : As Lancy Construction Private Limited is associated with various vendors the objective is to understand the performance of those vendors in order to benefit the company.
• To analyze the vendor management techniques at Lancy Construction Private Limited The researcher wants to study the different vendor management techniques adopted by Lancy Construction Private Limited
• To select the best vendor in order to minimize the cost :
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This analysis examines the difference between the managers rating their vendors based on different suppliers attributes and selecting the suppliers of their own choice. Here two methods are used such as Likert Scale Set Of Questions and Discrete Choice Analysis Experiment where Likert Scale Set Of Questions determine the importance of various supplier attributes like quality ,price, delivery performance and flexibility and Discrete Choice Analysis examine the choice of suppliers. The result states that even though managers say quality is most important attribute for vendor the managers actually select their vendor based on their cost and delivery
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