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Question 185 - CSCP discussion

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A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier. Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?

A.
Discuss ways to raise the ratings for the next review period.
Answers
A.
Discuss ways to raise the ratings for the next review period.
B.
Tell the suppliers they are on probation for 3 months.
Answers
B.
Tell the suppliers they are on probation for 3 months.
C.
Immediately cancel outstanding contracts with those suppliers.
Answers
C.
Immediately cancel outstanding contracts with those suppliers.
D.
Ask the suppliers to explain the poor performance.
Answers
D.
Ask the suppliers to explain the poor performance.
Suggested answer: A

Explanation:

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.

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

APICS, 'Supplier Relationship Management Basics'

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asked 16/09/2024
ERIC MERRILL
41 questions
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