APICS Certified Supply Chain Professional (CSCP) — Question 115

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?

Answer options

• A. Discuss ways to raise the ratings for the next review period.
• B. Tell the suppliers they are on probation for 3 months.
• C. Immediately cancel outstanding contracts with those suppliers.
• D. Ask the suppliers to explain the poor performance.

Correct answer: A

Explanation

The correct answer is A because discussing ways to improve ratings fosters a collaborative approach and helps suppliers understand the expectations for future performance. Option B is inappropriate as it does not encourage improvement, while C is too drastic without giving suppliers a chance to rectify their issues. Option D could be useful but does not focus on a constructive path forward.