Every relationship should be reviewed to make sure that all parties’ needs are being met and that obligations are fulfilled. Managers should hold one-on-one meetings with employees, sales people should connect with clients, and, when it comes to supply chains, companies should review their suppliers. Reviews give insight into how suppliers add risk to the supply chain, allowing businesses to make data-driven decisions on which suppliers to keep.
Conducting Interim Supplier Reviews
On a high level, supplier reviews can decide the fate of a supply chain partner, however, supplier reviews should be used for more nuanced and partnership-specific goals. For example, a supplier that presents relatively high risk, like a hazardous chemical disposition company, might need frequent, regular reviews to ensure safety compliance. In contrast, a supplier that provides something innocuous, like microchips, would need less frequent regular reviews. However, if the microchip supplier were recovering from a disruption, then their partners may require an ad hoc review to verify that the cause of the disruption has been addressed. In short, reviews should be used to align suppliers with the supply chain’s goals and prove performance.
The type of review will depend on the type of supplier and what the situation is. Transactional suppliers may not need any regular reviews at all. Instead, short, mini-reviews can help resolve specific issues. Important suppliers, like those who increase risk, should be reviewed frequently. Strategic suppliers, those with aligned goals and have a shared business outcome, should participate in frequent joint reviews to ensure that all strategic partners are advancing toward the same target.
Regardless of the type of supplier, it’s important to structure reviews with purpose, process, and people in mind. This starts by performing data gathering before the review is even proposed. Identify the supplier’s KPIs and review the supplier’s performance internally. Afterward, the agenda can be set to address the data. The supplier can be invited to suggest agenda items. Meeting organization should ensure that subject matter experts and specialists are invited. Finally, clear action items should be agreed on and deliverables measured against them.
Take Advantage of Post-Work Supplier Reviews
Did you know that online reviews can impact 67% of decisions to do business with a company? Avetta’s platform allows users to evaluate suppliers after work has been completed and makes these reviews available to all potential partners. While any supplier might be credentialed to perform a service, post-work evaluations give users insight into the quality of their service.
Post-work supplier reviews give you better visibility on which supply chain partners to do business with. It also gives you a tool for holding them accountable. Suppliers are incentivized to perform because negative reviews not only threaten repeat business with a dissatisfied partner, but also future business with potential partners. According to a report by Moz, a negative review appearing on the first page of Google puts an estimated 22% of business at risk. Best of all, Avetta users have the peace of mind that all reviews are from legitimate users who have worked with the supplier. For the very best snapshot of suppliers, vendors, and contractors, Avetta is the only solution you need.
Read more about how Avetta’s Supplier Reviews can help manage risk within your supply chain.