The role of supplier performance evaluations in mitigating risk: Assessing evaluation processes and behaviors

Given the level of outsourcing, supplier performance evaluation (SPE) is a critical supply chain process. SPEs are used to record supplier performance levels to inform future supplier selections, and thus mitigate the risk of adverse selection. Numerous weaknesses associated with industrial buyers' collection and use of supplier performance information call SPE effectiveness into question. The risk-related factors affecting SPE effectiveness...