Intermediate Courses

Supplier Performance Management

This workshop aims to equip delegates with practical methodologies to manage their category from end- to-end.


This intensive workshop explores developing a supplier relationship improvement programme to rehabilitate a dysfunctional relationship or improve performance within a satisfactory relationship.

This course is designed for:

The workshop will benefit managers who are responsible for outcomes delivered by supplier and wish to support selected suppliers in enhancing performance.

Course structure

A practical two-day workshop consisting of nine session involving exercises, case studies, presentations and trainer-facilitated discussions. Each of the sessions will be led by an experienced facilitator and will feature the key principles and practical methods which may be used in the supplier management process, together with practical case study sessions to maximise the transfer from the workshop to the workplace.

Benefits of attending

Attendance will enhance the capability of attendees to design and manage supplier relationship improvement programme.

As well as this, delegates will gain three key benefits from attending:

  • More capability to manage supplier performance, including developing a supplier improvement programme
  • More likelihood of improved supplier outcomes
  • Less likelihood that the client will fail to manage critical supplier relationships appropriately

Key learning outcomes

  • Develop a performance management framework to motivate supplier performance for key suppliers
  • Design and implement a supplier improvement programme appropriate for a variety of supplier relationships based upon the goals of each category and the scale of improvement targeted
  • Create appropriate governance and operational review mechanisms to monitor and review improvement
  • Support improvement through problem solving tools and appropriate balance of commercial and contractual motivators
  • Develop a mix of soft and hard boundaries for support and develop contingency plans in the event that improvement is not forthcoming


Course Content


Designing a supplier performance improvement framework

  • Selecting candidates for improvement
  • Enrolling suppliers onto an improvement programme
  • Governance structures for improvement
  • Defining dimensions to measure
  • Prioritising improvement and developing a plan
  • Levers of performance management
  • Problem solving and resolution
  • Deciding when to support, escalate or terminate

Selecting candidates for improvement

  • Supply base management in overview
  • Defining ‘delinquent’ suppliers
  • New suppliers and trials or pilots
  • Managing expectations about improvement

Enrolling suppliers onto the programme

  • Engaging suppliers at the right level
  • Building a business case for application
  • Answering the WIIFM question

Governance structures for improvement

  • Executive sponsorship
  • Charter for the operational team
  • Reporting structures
  • Roles and responsibilities
  • Building a sense of shared purpose

Defining dimensions to measure

  • Agreeing the dimensions
  • Developing metrics and measurement routines
  • Baselining current performance

Prioritising improvement opportunities

  • The psychology of improvement
  • Target setting for improvement
  • Simple cost/benefit analysis
  • Benefit sharing or claimed by the client

Levers of performance management

  • Commercial motivators
  • Contractual motivators
  • Waste elimination and margin protection
  • Creating incentives for joint co-operation

Problem solving and resolution

  • Root cause analysis
  • Prioritising the root causes
  • Who should resolve the problem?

Support escalate or terminate?

  • Setting hard boundaries around support
  • Setting realistic targets before termination
  • Contingency plans and transition mechanisms upon termination


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