FEB 23 2023 Blog Supplier Performance Management

What To Do When a Supplier Isn’t Performing to Standard

What should you do when a supplier you’ve contracted with isn’t performing to your standard? It’s crucial to be able to swiftly identify poor performance and step in to mitigate any associated risks. Consider the following to guide you:

Increase the Frequency of Performance Reviews

For an underperforming supplier, you may want to increase the frequency of performance reviews. But make sure to allow enough time between reviews for the supplier to make the required changes. Performance reviews keep you informed about your partners’ performance and let them know you’re watching closely.

Create a Remediation Plan

Include hard metrics to measure against, so you can specify exactly which areas need improvement, whether meeting SLAs, reducing response time, or improving customer support—and how much improvement is necessary before terminating the contract. When a supplier isn’t performing, remediation plans should be built into your regular meeting schedule.

It’s never a happy ending when a partnership doesn’t work out. But if you have a standard process in place for an underperforming supplier, things will be much smoother in the long run.

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