I would like some ideas from the group regarding the consquences which should occur for poor performance based on a monthly scorecard consisting of quality and delivery for appoximately 25 critical suppliers of PWBAs and metal enclosures. I also would like to know how you would address if the poor rating is based on either quality or delivery how would you treat one versus the other. Thank you.
Interesting notion. Some questions for you...
1. You state they have poor performance. Against what basis are you making that assessment? Set aside the scorecards-is there truly a problem? What is the problem? How do you propose to make it better?
2. How many different vendors do you have to choose? Are these relationships ones you will need to manage, or do you have other suppliers?
Someone made the suggestion (it's a really good one) to develop communication and improvements with a supplier. Suppliers are not icebergs out in an ocean; they are living, breathing people with an interest to gain more business. Sometimes developing a good relationship with a supplier may take some effort and communication. No good relationship is developed without time and effort (mentioned in a previous post), whether you want to invest that time and effort is your call to make.
Taking some time to visit and talk with the supplier may yield solutions that you had not even thought of. As wisely mentioned before, yes, take them out to dinner. That shows that you truly care about the relationship. That vendor will have a completely different perspective of you as the customer when you leave.
As for the trade-off of quality and delivery: again, that will depend upon your value system and what is important in your organization. One may be more critical than another.