When a company implements a new supplier rating system and identifies suppliers who fall below the cutoff point for performance, the most appropriate action is to discuss ways to raise the ratings for the next review period. This involves:

Engaging in Dialogue: Scheduling meetings with underperforming suppliers allows for open communication about the performance issues

and ways to address them. 2. Collaborative Improvement: Working collaboratively with suppliers to develop action plans for improvement can lead to better performance in cost, quality, and delivery.

Setting Clear Expectations: Clearly communicating the performance expectations and the consequences of not meeting them helps suppliers understand the importance of improvement.

Providing Support: Offering support and resources, such as training or process improvement suggestions, can help suppliers achieve the desired performance levels.

This approach fosters a constructive relationship and continuous improvement, rather than punitive measures that could disrupt the supply chain.

References

"Supplier Evaluation and Performance Excellence: A Guide to Meaningful Metrics and Successful Results" by Sherry Gordon

APICS, "Supplier Relationship Management Basics"