What are the best ways to manage supplier performance after development?

1 Set clear and realistic goals

One of the first steps to manage supplier performance after development is to set clear and realistic goals for the supplier. These goals should be aligned with the buyer's objectives, expectations, and requirements, and should be measurable, achievable, relevant, and time-bound. The goals should also be communicated to the supplier and agreed upon by both parties. Setting clear and realistic goals helps to establish a common vision, foster collaboration, and track progress.

2 Monitor and measure performance

Another key step to manage supplier performance after development is to monitor and measure the supplier's performance against the agreed goals. This can be done through various methods, such as regular reports, audits, surveys, inspections, or reviews. The buyer should use relevant and consistent metrics and indicators to evaluate the supplier's performance, such as quality, delivery, cost, innovation, or customer satisfaction. The buyer should also provide timely and constructive feedback to the supplier, highlighting the strengths, weaknesses, opportunities, and threats.

3 Recognize and reward performance

A third important step to manage supplier performance after development is to recognize and reward the supplier's performance. Recognition and reward can take various forms, such as verbal or written praise, certificates, awards, bonuses, incentives, or preferential treatment. Recognition and reward can motivate the supplier to maintain or improve their performance, strengthen the relationship, and increase loyalty and trust. However, the buyer should also ensure that the recognition and reward are fair, transparent, and consistent.

4 Address and resolve issues

A fourth essential step to manage supplier performance after development is to address and resolve any issues that may arise. Issues can be related to quality, delivery, cost, innovation, or communication, and can have negative impacts on the buyer's operations, reputation, or customer satisfaction. The buyer should have a clear and effective process for identifying, reporting, investigating, and resolving issues with the supplier. The buyer should also involve the supplier in the problem-solving process and seek mutually beneficial solutions.

5 Seek continuous improvement

A fifth and final step to manage supplier performance after development is to seek continuous improvement. Continuous improvement is the process of finding ways to enhance the capabilities and performance of suppliers over time. The buyer should encourage the supplier to adopt a culture of continuous improvement, where they are willing to learn, innovate, and adapt to changing needs and expectations. The buyer should also support the supplier's continuous improvement efforts by providing resources, training, coaching, or mentoring.

6 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?