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To effectively manage your suppliers, you need to take the following steps:
1. Identify the root cause of any issues with the supplier's performance.
2. Set goals and plans for the supplier's performance improvement.
3. Establish a timeline, milestones, and responsibilities for the improvement plan, and agree on the consequences of non-compliance or underperformance.
4. Regularly monitor and measure the supplier's performance, and provide constructive and timely feedback on their strengths and weaknesses.
5. Have a contingency plan in place to mitigate the risks and costs of switching to another supplier or alternative source.
6. Update your supplier qualification criteria, performance standards, and risk management strategies, and apply them consistently and fairly across your supply chain.
