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Supplier Relationship Management

Dealing with suppliers to ensure that assets and services provide the best value to the organization.
Level 1 Introductory: Demonstrates introductory understanding and ability and, with guidance, applies the competency in a few, simple situations. Can direct people to the appropriate source for further information.

BEHAVIORS

  • Explains the differences between strategic and non-strategic suppliers and the associated supplier management principles.
  • Describes the differences between strategic and non-strategic stakeholders and the associated relationship management principles.

QUESTIONS

  • Tell me how you have interacted with suppliers in the past.

Probing Questions

* What information did you gather from those interactions?

* What was the suppliers' approach to you?

* What did you learn about supplier relationships?

* What were the differences in the suppliers you encountered?

* How did your relationships with suppliers change over time?

Level 2 Basic: Demonstrates basic knowledge and ability and, with guidance, can apply the competency in common situations that present limited difficulties.

BEHAVIORS

  • Summarizes all details about major vendors, suppliers and business partners, and their products and services.
  • Understands the benefit of partnering with the vendor(s).
  • Articulates the need for and means of monitoring compliance with vendors.
  • Explains the need to provide appropriate constructive feedback in a professional manner to suppliers.
  • Applies the principles of supplier management techniques.
  • Applies the principles of strategic and non-strategic stakeholder relationship management.
  • Applies the principles of customer and stakeholder management.

QUESTIONS

  • Tell me how you handled a pricing dispute with a supplier.

Probing Questions

* What was the key issue?

* How did you communicate the dispute?

* How did the supplier react?

* What was the outcome?

* How did you prevent this from happening again?

Level 3 Intermediate: Demonstrates solid knowledge and ability, and can apply the competency, with minimal or no guidance, in the full range of typical situations. Would require guidance to handle novel or more complex situations.

BEHAVIORS

  • Liaises with vendors as required.
  • Ensures compliance with contractual agreements.
  • Assists legal specialists to draw up an individual supplier agreement.
  • Conducts constructive debriefings based on evidence, escalating if unresolved.
  • Applies the principles of supplier performance measurement.
  • Manages strategic and non-strategic supplier relationships appropriately.
  • Manages relationships with strategic partners to enable sound partnership agreements.
  • Resolves any issues in supplier performance, escalating when necessary.
  • Operates as a senior-level contact to key stakeholders, to maximize their engagement and support.

QUESTIONS

  • Tell me about a time you tried to resolve a contract dispute with a supplier.

Probing Questions

* Why was there a contract dispute?

* What did you do to manage the issue?

* How did the supplier react?

* What was the outcome of the dispute?

* Did it change the way you dealt with suppliers?

Level 4 Advanced: Demonstrates advanced knowledge and ability and can apply the competency in new or complex situations. Guides other professionals.

BEHAVIORS

  • Develops plans for specific business initiatives with suppliers.
  • Ensures that full benefits to the organization from agreements with the vendor(s) are realized.
  • Establishes quality standards and quality assurance procedures
  • Monitors contract effectiveness with stakeholders.
  • Monitors effective contract implementation.
  • Manages supplier relationships through structured supplier and contract management processes.
  • Implement best practices in supplier relationship management.
  • Manages new strategic relationships.

QUESTIONS

  • Tell me about a time you had to choose between multiple vendors.

Probing Questions

* How did you find potential vendors?

* What criteria did you use to determine the best vendor?

* How did you ensure the relationship was going to be successful?

* What did you learn from this experience?

Level 5 Expert: Demonstrates expert knowledge and ability, and can apply the competency in the most complex situations. Develops new approaches, methods or policies in the area. Is recognized as an expert, internally and/or externally.

BEHAVIORS

  • Establishes the principles of a vendor agreement, balancing the interests of the organization and the vendor.
  • Deepens the relationships with contracted suppliers.
  • Resolves disputes with strategic suppliers, escalating any legal issues when necessary.

QUESTIONS

  • Tell me about a time you coached someone else on dealing with suppliers to resolve contract disputes.

Probing Questions

* What was the situation?

* What were the most important lessons you taught?

* What did you learn from this situation?

* Was the coaching successful?