Smart-Purchasing.com: Best Practices: Checklist

Best Practices: Supplier Development
Develop a formalized supplier award program

Traditional	Best Practice
Infrequent thanks. Supplier’s share of the commodity is increased. New business is awarded.	Create program to award exceptional suppliers. Clearly indicate what new business award winners will receive. Award top performers and publicize winners.

Rationale
Gives suppliers something to hang their hat on. Rewards exceptional performance; gives others an incentive to perform well. “Human Nature requires recognition”. Deirdre O’Connor, Intel. “Top purchasers view their awards programs as integral parts of their overall efforts to improve total quality and reduce cost.” -- Purchasing Magazine
Details
Some companies recognizes top-performing suppliers in advertisements in business publications, others make a point of delivering the awards not only to senior management at a banquet, but to the workers on the shop floor.

Best Practice | Case Study | Commentary