Operations Analysis

The Supplier Everyone Complains About and Nobody Changes

D
Author
DOMS Global LLP
Published
December 17, 2025
Read Time
6 min read
The Supplier Everyone Complains About and Nobody Changes

The complaint comes up in almost every review meeting. Deliveries slip, a batch occasionally has to be sent back, and someone on your team spends part of each week chasing.

And every time, the conversation ends the same way. Changing supplier would be disruptive, they have been with us a long time, and the alternative is unknown. So nothing happens, and the same conversation occurs next quarter.

The cost is real, it is just not on any invoice

The reason a poor supplier survives is that their failures appear in other people's budgets. The invoice looks competitive. The cost lands somewhere else entirely:

  • The hours your team spends following up on what should arrive automatically.
  • Production or delivery delays passed on to your own customers.
  • Rework and rejection, and the material lost with it.
  • Buffer stock you carry because you cannot rely on the lead time.
  • The premium you occasionally pay someone else for an emergency order.
  • Your own reputation, spent covering for theirs.

Add those and the cheap supplier is frequently the expensive one. Nobody has added them because they sit across four departments and no single person owns the total.

A supplier is not cheap because their price is low. They are cheap when the total cost of using them is low.

Score them on what actually matters

You cannot manage a supplier on impressions. Four numbers, tracked simply, will do:

  1. 1.On-time delivery, as a percentage of orders delivered by the promised date.
  2. 2.Quality acceptance, the percentage accepted without rework or rejection.
  3. 3.Price stability, how often and how far quoted prices move.
  4. 4.Responsiveness, time to answer a query or resolve a problem.

A spreadsheet updated when goods are received is enough. Six months of this converts an argument based on memory into a conversation based on evidence, and memory is unreliable in both directions: it exaggerates recent failures and forgets old ones.

Have the conversation before you switch

Most underperforming suppliers have never been told, precisely, what is wrong. They have heard general dissatisfaction, which is easy to discount.

A specific conversation is different. Bring six months of data, state the two things that must improve, name the numbers you expect, agree a review date, and say plainly what happens if it does not change.

A meaningful share of suppliers improve at this point, because for the first time they understand that the relationship is measured and at risk. That is a much cheaper outcome than switching, and you will have lost nothing by trying it first.

Reduce the risk of the alternative

The fear of switching is really a fear of the unknown, and it can be engineered down:

  • Qualify a second supplier before you need one, with a small trial order.
  • Move a defined share of volume, perhaps twenty percent, rather than everything.
  • Run both for a period and compare on the same four measures.
  • Document the specification properly, so the new supplier is not guessing at what the old one knew.

That last step is where most switches fail. Long-standing suppliers accumulate undocumented understanding of your requirements, and if it lives only in their heads, changing supplier means rediscovering it painfully. Writing the specification down is worth doing whether or not you switch.

Concentration is its own risk

If one supplier represents more than about a third of your input for anything critical, you have a resilience problem regardless of how well they perform. Prices, ownership and priorities change, and a business with no alternative has no negotiating position and no fallback.

That is a governance question rather than a purchasing one, and it belongs in the same conversation as the rest of building a business that absorbs shocks.

Start with one

Do not attempt a procurement overhaul. Take the supplier that generates the most complaints, measure them for a quarter, have the specific conversation, and qualify one alternative.

That single sequence usually returns more than a year of general intent, and it establishes a pattern the business can repeat. This is straightforward operations improvement work, and if you want to know which parts of your operation are quietly absorbing cost like this, the free operations diagnostic is a good place to start.

Frequently asked questions

Why do businesses keep underperforming suppliers?

Because the supplier's failures appear in other people's budgets. The invoice looks competitive while the real cost lands as chasing time, delays passed to customers, rework, buffer stock carried against unreliable lead times, and emergency orders elsewhere. No single person owns that total, so it is never added up.

How should supplier performance be measured?

Four numbers tracked in a simple spreadsheet updated when goods are received: on-time delivery as a percentage of orders arriving by the promised date, quality acceptance without rework or rejection, price stability, and responsiveness to queries and problems. Six months converts memory-based arguments into evidence.

Should you talk to a supplier before replacing them?

Yes, because most underperforming suppliers have never been told precisely what is wrong, only that there is general dissatisfaction. Bring six months of data, state the two things that must improve with expected numbers, agree a review date, and say what happens otherwise. A meaningful share improve at that point.

How do you reduce the risk of switching suppliers?

Qualify a second supplier before you need one with a small trial order, move a defined share of volume rather than everything, run both and compare on the same measures, and document the specification properly. Long-standing suppliers hold undocumented knowledge of your requirements that must be written down first.

vendor managementsupplier performanceprocurement processsupply chain operationsoperations improvement

Recognise any of this
in your business?

Most of what we write about started as a problem someone brought to us. If something here sounded familiar, a conversation costs nothing and usually makes the constraint obvious.