Supply Chain Management Review

Robert A. Rudzki

SRM and Supplier Recognition - III
April 15, 2008

What are the reasons in favor of Supplier Recognition (an annual event in which your “best of the best” suppliers are publicly acknowledged and thanked, often followed by a press release naming those top suppliers)?

There are several:

·        It demonstrates to your supply base that you are serious about rewarding excellent performance

·        It can raise the bar for your entire supply base, once they understand how they benefit from your public recognition

·        It demonstrates to your own organization that it’s not just the negotiated deal that counts, it’s how well the supplier (and you) perform after the deal that matters

·        It involves your internal clients/users in assessing and actively managing the supply base

·        Done well, it can energize your supply base and generate a significant return on investment

There are also some issues to be aware of:

·        It requires leadership, effective project management, and commitment from top management

·        It requires a budget

·        It has a long lead time for the first year (often 9 – 12 months)

·        It can subject you to behind-the-scenes criticism if an annual supplier recognition event is inconsistent with how you manage and treat your suppliers during the year

More on this topic in the near future.

Posted by Robert A. Rudzki on April 15, 2008 | Comments (1)