Question 3

(a) Following through from Question 2. As a result of the supply chain disruption caused by the Covid-19 pandemic, the organisation may need to re-examine the current supplier performance measurement system.

Compose an argument for the importance of a well design Supplier Performance Measurement system for the organisation.

Note that Question 3(b) does not refer to the organisation for Questions 1(b), 2 and 3(a), but it refers to the general application of the concept of Supplier Development.

Imagine that a company found that several of their long-term suppliers were not meeting the agreed performance targets. Those have been historically key suppliers which had been in the supplier base since the inception of the company. These suppliers have literally grown their business in tandem with the companys own growth. Now, the management wants to embark on a supplier development programme to raise these key suppliers performance to the next level.

Propose how the supplier willingness should be assessed to implement supplier development programme for these long-time suppliers