How can a lead firm improve a supplier's performance when the cost to replace the supplier is high?

Question

Quizplus · Accepted Answer

Engaging the supplier in capability-building is the best choice when the cost to replace the supplier is high. This involves working with the supplier to identify areas of weakness and providing training, resources, and support to help them improve their performance. This approach can help to build a more collaborative and productive relationship with the supplier, and may ultimately result in better quality products, lower costs, and increased efficiency. Firing the supplier is not a good option as it may be costly to find a new supplier and may disrupt the supply chain. Reporting the supplier to the Better Business Bureau is not likely to improve their performance and may damage the relationship. Building the supplier's products internally may not be feasible or cost-effective.

How Can a Lead Firm Improve a Supplier's Performance When