Supplier Performance Measurement Recommendations - Case: Restaurant chain X

This thesis was commissioned by the restaurant chain X. A fine-dining chain serving pizza and Italian dishes, the case company has had serious problems regarding supplier performance which affects its daily operations as well as total costs, which stem from the lack of measurement. The SCM department, which is in charge of purchasing and supplier man-agement and the Operations team, which directly receives and uses the goods are involved. The thesis aims to explore the situation from both perspectives plus expectations and chal-lenges identified by the case company when establishing a system for measuring supplier performance, thereby proposing recommendations for improvement. The thesis is composed of a theoretical part and an empirical part. In the theoretical part, the author investigates literature on supplier performance measurement with emphasis placed on two points: who to measure (suppliers to measure) and what to measure (measures to in-clude). This explains the inclusion of supplier segmentation and supply base reduction, as they support the organizing of the supply base for measurement. Based on the theoretical framework, the author acquired qualitative data from the case company staff on the topic. Semi-structured interviews were conducted with the respondents from the Operations team and the SCM department. The acquired data was analysed using the qualitative approach. In addition, the author gathered secondary data through books and articles. Based on the analysed data, the author presents suitable recommendations for the case company: supplier performance measurement system implementation (mainly how to create a list of suppliers for measurement, and what should be measured), as well as the segmenta-tion of suppliers and supply base reduction