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Supplier relationshipsand servant leadership?
I was asked to help with a problem…some of our suppliers weren’t adhering to their contract
ORDER #23
100 PARTS FOR 7AM THE DAY
AFTER TOMORROW
This supplier is unreliable; they are always late
Procurement knew what to do…change the contracts, add a penalty clause and enforce
I had a different idea; servant leadership….what could we do differently?
We could ask the supplier to
suggest a solution
The supplier had some insight to share…driver shifts meant they could not deliver before 8am
A new process was established….only place orders which ask for delivery after 8am
ORDER #24
200 PARTS FOR 8AM THE DAY
AFTER TOMORROW
We should do more business
with this supplier; they
are reliable
I was happy; we had avoided penalties…and remember suppliers effectively work on a cost plus mindset
Servant leadership: share power, help develop high performing partnershipsand reap the benefits of a supplier that wants to work with you
Penalties or partnership; how do you treat your suppliers?