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In the first installment of this series on supplier engagement, we discussed how having strong relationships with your suppliers is a key part of the journey to deep supply chain sustainability. Now, let’s take this concept further by examining the role of supplier scoring—how it integrates into your supplier engagement strategy and supports broader goals in supply chain sustainability management.

The Role of Supplier Scoring in Building Stronger Relationships

Many still think of supplier scoring as gathering metrics on things like responsiveness, quality of data, and adherence to training. But in reality, it’s more than that—it’s a powerful and versatile tool that is often underutilized and misused. In short, supplier scoring is about motivating and recognizing your suppliers. When suppliers know they’re being evaluated, it gives them clear goals to strive toward and a better understanding of how they compare to their competitors. More importantly, it shows areas for improvement.

When supplier scoring is undertaken with a collaborative mindset—one that emphasizes opportunities rather than threats—you encourage suppliers to succeed. It takes supplier scoring from an old-world, punitive strategy and modernizes it, creating a new-world approach to compliance and sustainability that allows business partners to work together toward shared goals.

Assessment Results: Defining Your Strategy

Supplier scoring doesn’t mean much unless there is a clear strategy in place to action the provided data. At its best, supplier scoring will add another dimension to risk management strategies by providing insights into each supplier’s performance beyond traditional metrics like on-time delivery and product quality.

If a supplier scores poorly with regard to compliance or responsiveness, they represent a risk to supply chain sustainability, especially when it comes to strategic or sole-source suppliers. When these risks are proactively mitigated, it not only protects the bottom line but strengthens the overall supplier network.

Best Practices for Supplier Engagement & Managing Assessment Results

It’s clear that supplier scoring is a cornerstone of an effective supply chain sustainability management strategy, but how do you ensure you’re creating the best possible outcomes? Here are some best practices:

1. Accountability & Empathy: Often, the people responsible for responding to your regulatory and sustainability requests have been assigned that task on top of their core job responsibilities. In many cases, your supplier doesn't have an employee who focuses only on regulatory and sustainability. It’s far more common to see this type of responsibility assigned as yet another hat to wear. Keeping in mind that this person is likely juggling multiple roles and responsibilities, it’s essential to approach them with empathy while still holding them accountable for performance.
2. Set Clear & Realistic Expectations: Keep suppliers informed not only about what they’re being asked, but why. Clear communication will help them better understand expectations and ensure they meet them on the first try.
3. Explain the Fallout of Low Scores: Make sure all parties understand the short- and long-term consequences of low supplier scores. Without a full understanding of how scoring impacts business relationships, suppliers can’t be expected to take corrective actions seriously.
4. Work on Improvements Together: Don’t give suppliers a slap on the wrist every time they fall short of expectations and hope for improvement. Instead, work collaboratively on plans to deliver on expectations—this approach will not only improve scores, but also relationships.
5. Follow Through: Consistency is key. Once a scoring system is in place, the impacts of those results, whether positive or negative, need to be implemented with consistency. Failure to do so could undermine progress and relationships.

Ready to Elevate Your Supplier Relationships?

At Assent, we’re committed to helping complex manufacturers grow their supplier relationships and achieve supply chain sustainability management goals. Learn how our solution provides best-in-class supplier engagement strategies at assent.com