How would you handle a vendor who consistently falls short on meeting your supply needs?

"if you cannot measure it, you cannot manage it" track the supplier performance, work closely with the supplier to understand the shortfall. It could be a lack of understanding, external market pressures, or even the caused by the client (shock horror). Open and honest communication is key to a healthy supplier relationship, work with them before you move away from them. as a client are likely to learn more about your supply chain and the market you operate through your suppliers than from your desk.

Efectivamente hay que evaluar con detenimiento las causas del suministro inconsistente e ir planteando escenarios alternativos.

Begin by identifying the root causes behind the vendor's shortcomings. Are there issues with their processes, supply chain disruptions, or resource constraints? Understanding the underlying reasons allows you to address the problem more effectively, whether it's a temporary setback or a chronic issue.

Assess the root cause from vendor prospective will help the buyer to understand the genuine situation. If it's caused by any geopolitical issues or caused by short fall of their sources or monopoly in the market...etc.

Establish open and honest communication with the vendor. Clearly outline your expectations, timelines, and the impact their performance has on your business. Regular check-ins and a collaborative approach can help align both parties and foster a solution-oriented relationship.

A backup plan always gives confidence to maintain the stability in the supply chain. While exploring the alternative vendors, We should also ensure the quality of the deliverables. Without quality there is no meaning to get the delivery on time. Instead of kicking out the existing supplier immediately, it's suggestable to walk parallel with alternatives for the time being. We can switch to a new vendor once they prove their supply capabilities where they meet buyers requirements

If the vendor continues to underperform, it's essential to evaluate other options. This might involve sourcing from additional vendors to diversify risk, renegotiating terms, or even transitioning to a more reliable supplier. Maintaining supply chain stability should always be a priority.

Putting an action plan in place with a clear task trackers with completion dates is key and to have regular meetings to review progress has worked well for me in the past with vendors I was experiencing issues with.

From the outset, make sure your vendor understands your specific needs, quality standards, and deadlines. Having clear, documented expectations can serve as a reference point in case issues arise, ensuring both parties are on the same page.

Service incentives can also be put into place to encourage the supplier to go above and beyond with the service they provide.

Regularly track and review the vendor’s performance against agreed-upon metrics. This could include delivery times, quality of goods, or responsiveness. By monitoring these indicators, you can proactively address issues before they escalate.

Despite your best efforts, there may come a point where a change is necessary. If a vendor consistently fails to meet your needs and impacts your business operations, it's crucial to recognize when it's time to make a switch to a more reliable partner.