Regular performance reviews are crucial for suppliers that have a significant impact on the organization:
Standard: These suppliers typically provide routine products or services, and while performance reviews are important, they may not be the most critical.
Key: Key suppliers are important, but they are usually not as critical as strategic suppliers.
Strategic: Strategic suppliers provide goods or services that are vital to the organization’s long-term success, requiring regular performance reviews to ensure alignment and continuous improvement.
Commodity: Commodity suppliers provide widely available products, making performance reviews less critical compared to strategic suppliers.
Therefore, it is most important to conduct regular performance reviews with strategic suppliers.
References:
Strategic supply chain management literature.
Best practices in supplier performance management.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit