Supplier Performance Improvement Tips

April 9th, 2007 at 05:54am David Bush - Iasta

According to a recent article in Purchasing, suppliers who stand out are those willing to act as partners and that when you find them you should foster the relationship by communicating with them openly - early and often.

Consider using supplier forums to explain to suppliers what it takes for you to consider them best in class and the criteria you will use to measure them by. Explain your marketing dynamics, what you are doing, where you are going, why quality is critical, and what you see a supplier’s role as. If a supplier does not understand what it takes to be best in class, how can you expect the supplier to reach that level.

In today’s marketplace, where assurance of supply, quality, and regulatory compliance and service is often more important than cost, good supplier performance is critical. But best-in-class is difficult to achieve, and integration is critical.

The article offered three tips for buyers that are useful:

• Know exactly what you need from suppliers beyond the actual components or services they provide
• Communicate regularly on your vision, the needs within your markets, and your expectations form suppliers
• Measure suppliers on their willingness to innovate and to invest in your future as well as their own

And I would offer one more:

• Start the process in your eSourcing event … not after making the award

Entry Filed under: General, Supplier Performance, Suppliers, Supply Management Best Practices

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