A few weeks back, the Strategic Sourcing & Procurement Group on LinkedIn held a knowledge-sharing conference call based on the question “Do penalties improve supplier performance?” Shortly after the call, Michael Koploy posted a nice summary on softwareadvice.com. That summary covered these five top takeaways from the call:

1. Incentives Needed to Balance Supplier Penalties
2. Increase Supplier Performance Visibility & Communication
3. Create Escalating Expectations to Avoid the Status Quo
4. Start Incentives & Penalties with High-risk Suppliers
5. Set Unique Goals for Suppliers Across Different Industries

I don’t recall ever seeing guidelines for establishing the appropriate contacts. These things tend to just happen. But I often do see customer personnel getting involved in deals that could be delegated southward on the organizational chart. And I also see customer personnel not insisting on having a higher-ranking contact when they should.

Recommended Reading

• The Complete Supplier Management Strategy
• Supplier Management Strategy
• Supplier Management Metrics
• Strategic Supplier Management
• 15 Rules for Ethical Supplier Interaction
• Assess Supplier Financial Risk
• Managing Supplier Performance
• Procurement Ethics Checklist

NLPA Learning: Looking for authoritative procurement templates, tools, webinars, and more? Stop trying to create resources from scratch and start taking advantage of having exactly what you need right at your fingertips in NLPA Learning. (mgtrailer.com)