Vendor Performance: Vendor performance is be defined as the measure of how well a company’s vendors or suppliers are meeting their contractual obligations and delivering desired results. It can be used to determine levels of customer service, quality of products, and ability to stay within budget parameters. Companies often assess vendor performance by collecting feedback both from internal and external sources to identify what areas need improvement and allow them to make necessary changes. Understanding your organization’s vendor performance is essential for providing exemplary services and maintaining excellent relationships with partners.