A few weeks back, the Strategic Sourcing & Procurement Group on LinkedIn held a knowledge-sharing conference call based around the question “Do penalties improve supplier performance?” Shortly after the call, Michael Koploy posted a nice summary on softwareadvice.com. That summary covered these five top takeaways from the call:
- Incentives Needed to Balance Supplier Penalties
- Increase Supplier Performance Visibility & Communication
- Create Escalating Expectations to Avoid the Status Quo
- Start Incentives & Penalties with High-risk Suppliers
- Set Unique Goals for Suppliers Across Different Industries
If interested, you can read Michael’s complete explanation of each of these five takeaways here. However, I do have a question to add to the discussion: who exactly owns the customer-supplier relationship on both the customer and the supplier sides?
I don’t recall ever seeing guidelines for establishing the appropriate contacts. These things tend to just happen. But I often do see customer personnel getting involved in deals that could be delegated southward on the organizational chart. And I also see customer personnel not insisting on having a higher-ranking contact when they should.
So, I prepared the following matrix for who I would consider the typical owners of the customer-supplier relationship based on the relative sizes of the organizations involved. It’s not universally applicable, but I think it is representative of how the relationship is handled most smoothly in most situations. But I’d also welcome your thoughts on “who-should-be-dealing-with-whom.” Feel free to post your comments and share your experience.
To Your Career,
President & Chief Procurement Officer
Next Level Purchasing, Inc.
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