In business, attracting and retaining customers is of paramount importance. Customers need attention, respect, and a whole lotta love.
However, it is important to remember that any business relationship is a two-way street: just as you have customers, you’re probably a customer yourself. Of course you have the right to demand the highest level of product and service quality from every member of your supply chain and vendor base. But it is also important to cultivate lasting and mutually respectful relationships with the suppliers you prize the most.
Performance improvement motivation is a great way to ensure you receive the very best from your suppliers. It can be as simple as rewarding suppliers who exceed expectations (determined by implementing a supplier rating program).
It’s not tough to reward suppliers, but few organizations actually go out of their way to recognize stellar performance. A supplier awards program is not a resource-intensive project, but the results can be substantial.
Here’s a few different ways your organization can reward a supplier for consistent, high-quality performance:
Publicity: Issue a press release acknowledging a supplier’s performance excellence or even any news affecting the supplier alone or your business relationship.
Recognition: Hold a supplier awards reception and acknowledge Gold, Silver and Bronze suppliers. Also, consider launching a “Top Ten Suppliers” program where your company can list its best suppliers on a regular basis on your blog, website and internal and client newsletters.
Rewards: Provide a plaque or statue top suppliers can display in their reception area. It is a simple token, but reminds suppliers on a regular basis that they are appreciated and also helps them attract additional business.
Suppliers want prospective clients to know they consistently meet and exceed expectations and are appreciated by existing customers. If you help their business by communicating their strengths to others, your suppliers will reward you with enhanced performance.
You may have a very long list of suppliers, so it is important to determine which of suppliers carry the highest impact for your organization. To help determine your high-impact suppliers, take a look at our Optimizing Supplier Performance White Paper for detailed guidance.