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:

  1. Rank order your top performing suppliers.
  2. Organize these suppliers by industry.
  3. Document their respective strengths.
    • Why do stakeholders like our top performing suppliers?
  4. Segment the strengths by stakeholder type.
    • Role:  Front-line leaders, Mid-level leaders, Senior Leaders
    • Interaction:  Users, Influencers, Decision Makers, Supporters
  5. Identify the next tier of supplier performance.
  6. Determine which types of stakeholders would benefit most from each suppliers’ improved performance.
  7. Share the top performing supplier strengths with the underperforming suppliers.
  8. 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 🙂 )

P.S. Here’s a pretty cool tool that you can use to Quickly Calculate Supplier Cost You Can Avoid