Performance manage your suppliers

Not all of the suppliers who made it onto your Suppliers list will stay there forever (see Setup a suppliers list).

They have to 'deliver the goods' on each and every conversation and engagement. Be tough on them; after all, your customers will be tough on you. Suppliers should only remain on your list if they consistently deliver high quality products and/or services.

If you like, set some Key Performance Indicators (KPIs) against which all of your suppliers will be rated eg. SME understanding, efficiency, estimate Vs cost accuracy. Then, say on an annual basis, sit down and review your supplier activity logs against the KPIs together with your account details of spend with them, and start culling!

To be fair, I suggest that you call and discuss your concerns with any SME suppliers who are performing marginally before you dump them and give them a chance to repent (see Actively seek customer feedback), but it's entirely up to you.

On the other hand, if you have a supplier who has consistently met or exceeded your expectations/KPIs, be sure to call their Managing Director and let them know (just think about how good it would be if your customers volunteered positive feedback!).