Supplier performance evaluation programs help keep suppliers \u201cin line\u201d because suppliers know that they are \u201cbeing watched\u201d and measured.<\/p>\n
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But most companies usually only formally evaluate a small percentage of their suppliers. Most use the 80-20 rule to determine which suppliers will be evaluated \u2013 the 20% of suppliers to whom 80% of the spend is directed.<\/p>\n
But, of course, the other 80% of suppliers can cause headaches for buyers, too!<\/p>\n
In these cases, it is important for these buyers to know how to handle situations where one of their suppliers just isn\u2019t performing satisfactorily. Obviously, the first step is to try to work out the situation professionally.<\/p>\n
Unfortunately, that doesn\u2019t always work.<\/p>\n
So buyers should know what the second step is. It can be a frustrating and emotional time for buyers, so they shouldn\u2019t necessarily be left to their instincts to decide what to do. Many of us have lost our tempers trying to resolve situations and later ended up being embarrassed by how we reacted.<\/p>\n
So I think every purchasing department should have a plan for what comes next.<\/p>\n
Here are a list of things you CAN do. You should decide what you SHOULD do, and in what order:<\/p>\n
The possibilities are endless. But, again, you should know in advance what you are going to do, in what order.<\/p>\n
Things that should never be a part of your escalation plan are:<\/p>\n
Starting my career as a buyer and now being a president allows me to have fun and test some things that I would have worried about being fired over in the past. Perhaps I\u2019ll share some of my experiments in a future post!<\/p>\n","protected":false},"excerpt":{"rendered":"
Supplier performance evaluation programs help keep suppliers \u201cin line\u201d because […]<\/p>\n","protected":false},"author":12,"featured_media":4116,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2273","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-procurement"],"yoast_head":"\n