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sourceDocument: Xanadu Finance and Supply Chain
sourceDocumentLink: https://servicenow-prod.fluidtopics.net/r/xanadu/source-to-pay-operations

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ft:locale :

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ft:publication_title :

    - Xanadu Finance and Supply Chain

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---

# Configure Supplier Relationship and Performance Management

# Configure Supplier Relationship and Performance Management {#ariaid-title1}

* Release version: Xanadu
* 
* Updated August 14, 2024
* 
* ![](https://www.servicenow.com/docs/portal-asset/ico-clock) 1 minute to read

Define key performance indicators (KPIs) and segmentation criteria to measure supplier performance effectively.

Configuring Supplier Relationship and Performance Management involves the following tasks:

* Create KPI template and its thresholds: Define KPI template and thresholds to collect the metrics systematically for evaluating supplier performance.
* Create KPIs: Add suppliers to a KPI template to generate corresponding KPI records and KPI collection tasks for the suppliers.
* Configure Segmentation Rules: Configure segmentation rules to ensure consistent measurement and comparison of supplier performance, categorize suppliers into distinct groups based on specific criteria or characteristics.
{#configuring-supplier-performance-mgmt__ul_khh_gt5_jcc}
* **[Create KPI units](https://servicenow-prod.fluidtopics.net/wZJ_JSYCDCiLefELuRsuAQ)**   
  Create KPI units to be used as measurement units for the quantitative performance of the supplier KPIs.
* **[Create KPI performance domains](https://servicenow-prod.fluidtopics.net/W8lSWHmweIbGe7s9dekGyQ)**   
  Create KPI performance domains to classify various KPIs into categories. The KPIs under different performance domains can be viewed in the KPI management tab and the Performance dashboard to measure the supplier performance.
* **[Create a KPI template](https://servicenow-prod.fluidtopics.net/rXbeFxsEslgRzEJU5Tetrw)**   
  Create a KPI template to define KPIs against which you measure the supplier performance.
* **[Create KPIs by adding suppliers to a KPI template](https://servicenow-prod.fluidtopics.net/mIMC4kKsbMRW7QnuJe9CDg)**   
  You can add a new supplier whose performance you want to measure using the KPI template. Adding a supplier to a KPI template generates corresponding KPI records and KPI collection tasks for this supplier.
* **[Create segmentation rule](https://servicenow-prod.fluidtopics.net/Kl6kxeqwKldh10YpEmhaOA)**   
  Create a segmentation rule that defines criteria for categorizing suppliers into different segments based on various attributes or performance factors.

**Related concepts**   

* [Supplier Document Management](https://servicenow-prod.fluidtopics.net/HoiAuziEarX_dPmmn1ZfpA "Supplier Lifecycle Operations uses the ServiceNow Document Management functionality to enable supplier managers, supplier owners, supplier administrators, and supplier contacts to manage supplier documents.")
* [Advanced Work Assignment for Supplier Lifecycle Operations](https://servicenow-prod.fluidtopics.net/deu89r7WZ~QARSdNp8zNjQ "Use the Advanced Work Assignment for Supplier Lifecycle Operations feature to automatically assign work items to agents based on availability and capacity.")  
**Related tasks**   

* [Install Supplier Lifecycle Operations](https://servicenow-prod.fluidtopics.net/qoXQBbdcz6K0XD4VdjOJrw "You can install the Supplier Lifecycle Operations application (com.snc.sn_supplier_mgmt) if you have the admin role. The application includes demo data and installs related ServiceNow Store applications and plugins if they are not already installed.")
* [Install Supplier Collaboration Portal](https://servicenow-prod.fluidtopics.net/jqPZP3p34Flz0IstKgXX4A "You can install the Supplier Collaboration Portal application (com.snc.sn_supplier_sp) if you have the admin role. The application includes demo data and installs related ServiceNow Store applications and plugins if they are not already installed.")
* [Configure the document template for the Sign document action type for supplier task](https://servicenow-prod.fluidtopics.net/ICqFJYwJjbufWI14OI0_9Q "Create and configure the document template that enables you to collect e-signatures from multiple participants and generate a filled PDF document.")
* [Enable M2M mapping between supplier contact and suppliers](https://servicenow-prod.fluidtopics.net/MGbOX7Qo~b~WPMftghLCFg "Many-to-many (M2M) mapping between supplier contact and suppliers enables one supplier contact to be the contact for multiple suppliers, provided the suppliers share a parent-subsidiary relationship.")