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Question 392 - CSCP discussion

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Which of the following actions is most appropriate to take with a supplier whose ratings are below the agreed-upon performance levels?

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.
Inform the supplier that they are on probation for 3 months.
Answers
B.
Inform the supplier that they are on probation for 3 months.
C.
Place outstanding contracts with the supplier on hold.
Answers
C.
Place outstanding contracts with the supplier on hold.
D.
Modify the supplier performance expectations.
Answers
D.
Modify the supplier performance expectations.
Suggested answer: A

Explanation:

When a supplier's performance ratings fall below the agreed-upon levels, the most appropriate initial action is to engage in a constructive dialogue with the supplier. This discussion should focus on identifying the reasons behind the underperformance and collaboratively developing an improvement plan. This approach not only addresses the immediate performance issues but also fosters a long-term partnership based on continuous improvement and mutual benefits. Placing a supplier on probation or modifying performance expectations might be necessary if improvements are not seen, but these steps should come after attempting to work together on a solution.

Reference:

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

APICS Operations Management Body of Knowledge Framework

asked 16/09/2024
Anand R
37 questions
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