Top performing suppliers can be leveraged to improve your not-so-hot suppliers – via an approach called “Go to Green.”
To do so, you will need an automated process in place; one that captures stakeholder reviews of supplier performance. If such a process does not exist inside of your organization, read this first.
Here are the steps for applying Go to Green:
- Rank order your top performing suppliers.
- Organize these suppliers by industry.
- Document their respective strengths.
- Why do stakeholders like our top performing suppliers?
- Segment the strengths by stakeholder type.
- Role: Front-line leaders, Mid-level leaders, Senior Leaders
- Interaction: Users, Influencers, Decision Makers, Supporters
- Identify the next tier of supplier performance.
- Determine which types of stakeholders would benefit most from each suppliers’ improved performance.
- Share the top performing supplier strengths with the underperforming suppliers.
- Task the underperforming suppliers with developing relevant performance improvement plans for each stakeholder type.
Then rinse and repeat. The data will reveal which underperforming suppliers are true business partners (i.e.: they know how to adapt to the needs of your stakeholders). For those that are unable to adjust their execution behaviors, you now have the ammunition for a different course of action. (Be constructive 🙂 )