Best Practice (Good)
Create a permanent Vendor Compliance Manager position. Implement firm-wide vendor compliance standards to address such issues as advanced shipping notifications (ASN), labeling requirements, packaging quality, delivery timeliness and standard case quantities. Assess all vendors based on these criteria on a regular basis.
Typical Practice (Bad)
Allow individual buyers and purchasing managers to assess the performance of their vendors subjectively. Allow them to use their judgment to determine whether the vendor adheres to company standards (if explicit company standards even exist).
Benefits: Improves performance of third-party vendors by establishing expectations on labeling, packaging, promptness, etc. Consequently improves materials availability, delivery quality, on-time delivery percentage and correct order percentage, which in turn improve overall customer service.