Managing Supplier Performance Print

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After the contract is signed.

WHAT TO MEASURE

Delivery against promised dates Quality and defect rate Accuracy of invoicing Responsiveness to problems Whether commitments are kept

WHY MEASURE AT ALL

Impressions are unreliable, and disputes are resolved on records.

WHAT TO RECORD

Every failure, with date and detail.

HOW TO COLLECT IT

Simple notes at the point of receipt, rather than a formal system.

WHAT TO REVIEW

Performance, at a regular interval.

HOW OFTEN

Proportionate to the relationship's importance.

WHAT A REVIEW SHOULD COVER

Performance against expectations Problems and their causes What each party needs to change What is coming

WHY INCLUDE WHAT YOU SHOULD CHANGE

Supplier failures are frequently caused by the customer: late orders, changing requirements, slow decisions.

WHAT TO ASK THEM

What makes us difficult to supply.

WHY ASK

The answer is usually specific and fixable.

WHAT TO DO ABOUT REPEATED FAILURES

Raise them as a pattern, formally, with the record.

WHAT TO REQUEST

The cause, and what will prevent recurrence.

WHY THE CAUSE

Apology without cause means it recurs.

WHAT TO DO IF NOTHING CHANGES

Escalate, then replace.

WHAT TO ESTABLISH BEFORE THAT POINT

An alternative.

WHY IN ADVANCE

Replacing a supplier under pressure produces a worse choice.


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