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?