A company recently implemented a new supplier rating system. Data was collected from the enterprise resources planning system about each vendor's rating for cost, quality, and delivery over 12 months. A cutoff point was established for poor performers. The responsible purchasing agent then scheduled meetings with each supplier. Which of the following actions is most appropriate to take with suppliers whose ratings were below the cutoff point?
The most appropriate action to take with suppliers whose ratings were below the cutoff point is to discuss ways to raise the ratings for the next review period. This approach fosters collaboration and improvement, giving suppliers a chance to understand and meet the company’s expectations. It is a constructive step that aims to resolve issues and enhance performance rather than punitive measures or abrupt contract cancellations, which could disrupt supply chains and relationships.
D. Ask the suppliers to explain the poor performance.
The correct answer is A since these are new standards