Certified Professional Public Buyer (CPPB) Practice Test

If a supplier's performance review indicates poor service, what is a recommended course of action?

1. Immediately terminate the contract

2. Discuss performance issues with the supplier for resolution

3. Notify the appropriate legal counsel

4. Ignore the issues for future reference

The correct answer is: Discuss performance issues with the supplier for resolution

When a supplier's performance review highlights poor service, discussing performance issues with the supplier is crucial for several reasons. First, open communication allows both parties to identify specific areas of concern and understand the root causes of the problems. By addressing these issues collaboratively, it opens the opportunity for the supplier to explain any circumstances that may have contributed to their subpar performance and propose potential solutions or improvements. Additionally, engaging in constructive dialogue demonstrates a commitment to a professional working relationship and can lead to enhanced performance in the future. It also provides documentation of the efforts made to resolve the issues, which may be important for future evaluations of the supplier's performance. This course of action aligns with best practices in supplier management, emphasizing the importance of partnership and collaboration in achieving mutual goals. In comparison, immediate termination of the contract might disrupt operations unnecessarily and could lead to additional costs or delays in finding a replacement supplier. Notifying legal counsel may be premature unless the performance issues have legal implications, and ignoring the issues entirely does not address the underlying problems and likely leads to continued poor performance.