High-risk suppliers need to be constantly appraised for appropriateness to supply to your organisation. The result needs to be visible, risks identified and auditable.
What would happen if the relationship faltered? How often do you refresh the relationship or appraise the suppliers performance? How do you measure that? What is the risk to you if the supplier “disappears” overnight? Is the risk material, or just politically embarrassing?
Of course all these will depend upon a number of factors including how easy it is to replace a supplier, whether assured supply is important, the criticality of the commodity to your business model, and other social implications.
With Proactis you can build and maintain a strong supplier base by structuring and streamlining the entire supplier lifecycle. You can define corporate standards or benchmarks which suppliers can be measured against. Periodic reviews of suppliers or contracts can be prioritised. The way suppliers perform against their promises or your expectations and how well your supplier is collaborating with other buyers can also be measured. In addition, much of the workload of managing supplier relationships can be handed back to the supplier to allow them to self-serve – both for information requests and transaction delivery.