How do you evaluate the suppliers' performance and capabilities during a crisis or disruption?

1 Identify critical suppliers and processes

The first step is to identify which suppliers and processes are critical for your business continuity and customer satisfaction. You need to prioritize the suppliers that provide essential inputs, services, or components for your core products or operations. You also need to map out the interdependencies and alternatives for each critical process and supplier. This will help you understand the potential impact and risks of a disruption and prepare contingency plans.

2 Monitor suppliers' performance and communication

The second step is to monitor how your suppliers are performing and communicating during the crisis or disruption. You need to track key performance indicators (KPIs) such as delivery time, quality, quantity, and compliance. You also need to communicate frequently and transparently with your suppliers to understand their challenges, issues, and expectations. You should establish clear and consistent communication channels and protocols to exchange information, feedback, and support.

3 Evaluate suppliers' capabilities and resilience

The third step is to evaluate how your suppliers are coping and adapting to the crisis or disruption. You need to assess their capabilities and resilience in terms of their financial stability, operational flexibility, innovation potential, and risk mitigation strategies. You can use various methods and tools to conduct this evaluation, such as surveys, audits, interviews, or scorecards. You should also consider the external factors and context that affect your suppliers, such as market conditions, regulations, or social responsibility.

4 Collaborate with suppliers to address gaps and opportunities

The fourth step is to collaborate with your suppliers to address any gaps or opportunities that emerge from the evaluation. You need to work together to find solutions, improve processes, and leverage synergies. You should also share best practices, insights, and resources to enhance your mutual learning and development. You should aim to build trust, loyalty, and long-term partnerships with your suppliers, especially during challenging times.

5 Review and update your supplier evaluation criteria and methods

The fifth step is to review and update your supplier evaluation criteria and methods based on the lessons learned from the crisis or disruption. You need to ensure that your evaluation reflects the current and future needs and expectations of your business and customers. You also need to adapt your evaluation methods to the changing circumstances and conditions of your supply chain. You should review and update your evaluation criteria and methods regularly and proactively.

6 Implement continuous improvement and feedback loops

The sixth step is to implement continuous improvement and feedback loops for your supplier evaluation process. You need to monitor and measure the results and outcomes of your evaluation and collaboration with your suppliers. You also need to provide constructive and timely feedback to your suppliers and solicit their feedback as well. You should use the feedback to identify areas of improvement, recognize achievements, and celebrate successes. You should also foster a culture of continuous improvement and learning within your organization and with your suppliers.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?