5 Strategies for Improving Supplier Performance
Recognizing that China remains a highly competitive and important market for US companies, our firm is fully aware that it only takes one or two troublesome suppliers to wreak havoc on a global supply-chain. For those that are currently struggling with an under-performing Chinese supplier, consider these 5 tips for improving overall vendor performance:
- Re-evaluate a supplier’s capabilities -From raw material to finished goods, every importer should systematically audit their Asian suppliers at least once a year to document capabilities and verify compliance with your foreign supplier expectations.
- Redefine and document supplier expectations– Terms and agreements are essential to documenting expectations and ramifications for poor performance. Consider reviewing your supplier-specific requirements and concerns with struggling vendors during a face-to-face meeting.
- Prioritize improvement recommendations– Sometimes a supplier has just too many issues to solve all at once. Consider prioritizing these improvements to retain supplier buy-in and maximize the impact of each supplier improvement program.
- Pro-actively prepare for non-conformance– Even the best suppliers sometimes make mistakes. Routinely review how your company and your supplier will manage a variety of obstacles with supply –chain sustainability in mind. Consider such challenges as NCRS, product development delays, and raw material shortages.
- Institute performance benchmarking – Most suppliers perform well when being watched, it is call the Hawthorne effect. Make this work in your favor by implementing quarterly performance reviews with foreign suppliers to signal their performance is being routinely monitored, even when you are 6,000 miles away.
To learn more about these five tips and other ways you can improve the performance of your Asian suppliers, visit ABC University or watch any of our 30 min educational webinars.
Webinar: 5 Strategies for Improving Supplier Performance