Supplier performance can change from good to bad fast. Absent of a monitoring process, changes in supplier performance can go unnoticed – two weeks, two months, or even longer. For companies that rely on a lot of suppliers, this scenario is fraught with waste:
- Inefficient operations
- Frustrated employees
- Disappointed customers
- Unnecessary churn
Waste of this sort undermines cross-functional excellence, and the reputations of both supplier and their customers.
Improving Supplier Performance
Internal stakeholders know when suppliers are getting things done the right way. As such, their insight into supplier performance must be used as a guide to keep suppliers calibrated. To do so, supplier relationship managers should manage supplier performance feedback from internal stakeholders. Most importantly, the feedback must be managed in a manner that reveals waste in real-time.
To audit your stakeholder feedback process, answer the following questions:
- When Requesting Feedback — do you have to allocate more time than you’d like to …
- determining which questions to ask about each supplier?
- designing the layout of supplier performance surveys?
- requesting feedback from all stakeholders affected by supplier performance?
- determining which stakeholders are/are not responding to your feedback request?
- When Providing Feedback — do your stakeholders complain about not …
- having enough time to provide supplier performance feedback?
- being able to provide supplier performance feedback on mobile devices?
- being able to provide supplier performance feedback whenever they want to?
- knowing how their supplier performance feedback compares to other colleagues?
- When Viewing Feedback — do you have to allocate more time than you’d like to…
- searching for feedback results?
- formatting feedback results?
- analyzing outdated supplier performance data?
- helping your stakeholders understand the feedback results?