ASSESSMENT OF DATA-DRIVEN VENDOR PERFORMANCE EVALUATION IN RETAIL SUPPLY CHAINS: ANALYZING METRICS, SCORECARDS, AND CONTRACT MANAGEMENT TOOLS

Abstract

Vendor performance evaluation is a strategic element in retail supply chains, ensuring that suppliers deliver consistent value in terms of cost, quality, delivery, and compliance. This study explores how data-driven evaluation systems, contract management practices, and performance enforcement mechanisms collectively enhance supply chain efficiency and resilience. A quantitative, explanatory research design was adopted, with data collected through a structured questionnaire distributed to procurement managers, supply chain executives, and contract administrators. Purposive sampling ensured that respondents were directly involved in vendor oversight, while secondary data such as procurement reports and vendor scorecards were used to triangulate findings. Responses measured on a five-point Likert scale captured operational metrics, financial sustainability, and compliance adherence, along with the role of digital contract management systems in monitoring obligations, penalties, and incentives. Data analysis combined descriptive statistics, factor analysis, and structural equation modeling (SEM) to test hypothesized relationships between evaluation metrics, contract enforcement, and retail performance outcomes. Results indicate that operational metrics, particularly on-time delivery and quality conformance, remain central, but financial measures such as cost-to-serve and invoice accuracy, alongside compliance metrics, increasingly shape contractual decisions. Digital platforms were shown to transform contract management by enhancing transparency, reducing risks, and linking performance evaluation directly with enforceable actions. Performance-based contracting further aligned supplier incentives with retailer objectives, fostering accountability and continuous improvement. Overall, the findings highlight that vendor performance evaluation is no longer a static measurement process but a dynamic, data-driven framework that integrates analytics, scorecards, and contract enforcement to strengthen decision-making, supplier collaboration, and long-term competitiveness in the retail sector.