Should Your Business Reward Your Top Suppliers?

As companies work with smaller numbers of preferred vendors, some top US companies have implemented recognition programs to reward top suppliers. In an article last month, the supplier reward programs of a number of large US companies were examined.

Although the different companies operated a variety of recognition programs, the objectives were similar in that they rewarded suppliers for overall improvement, as well as those providing world-class delivery, quality and service. The benefits of recognition programs appear to benefit both the buyer and supplier; superior service for the buyer and improved customer satisfaction for the supplier.