Leadership Case Study:
Governance Through Supplier Transparency
Initial Situation
- Limited management visibility into supplier performance
- Inconsistent decision-making across functions
- Lack of standardized and comparable supplier evaluation
- High strategic dependence on key suppliers
- Limited ability to prioritize supplier development initiatives
- Need for transparency and accountability to support better decisions
Executive Approach
Executive Supplier Governance Framework
1. Scoring Structure including
Cross-functional governance involving Sales, Marketing, Procurement and Executive Stakeholders
2. Methodology
- 20+ criteria
- Weighting based on relevance
- Cross-functional evaluation
- Scalable
- Reviewed annually
Results & Impact
The result was a transparent, comparable and measurable supplier governance framework that enabled more objective decision-making and targeted improvement initiatives.
- Created management visibility across strategic suppliers
- Established comparable performance standards
- Improved prioritization of supplier development activities
- Enabled targeted escalation and improvement measures
- Increased accountability across internal functions and suppliers
Leadership Principle
The objective was not to measure suppliers.
The objective was to create transparency, enable better decisions and establish accountability across complex supplier relationships.
