If you read my previous article, you will know some of the challenges I faced during an assignment. There are a few common hurdles that crop up time and again:

1. Organisational Silos - Different departments manage their own supplier relationships without a joined-up framework. Procurement might be responsible for contracts, operations for performance, and finance for payments. Without a single point of accountability, governance falls between the cracks.

2. Inconsistent Standards - Each business unit or geography may use its own templates for KPIs, reviews, and risk assessments. This leads to uneven expectations and makes it difficult to compare performance or spot systemic issues.

3. Limited Visibility - Data on supplier performance, risk, and compliance is often scattered. Organisations may lack the systems or discipline to track and consolidate it meaningfully.

4. Passive, Not Proactive, Engagement - Supplier performance management is sometimes reactive, triggered by a service failure or a commercial dispute, rather than planned and forward-looking.

So What Can You Do Supplier Governance?

Over the years, I’ve seen some practical ways to build better supplier governance that’s fit for purpose, even in complex organisations:

1. Define What ‘Good’ Looks Like - Start by establishing what good supplier governance means in your context. This isn’t just about risk and compliance. It includes relationship management, innovation, continuous improvement, and how supplier value is measured. Develop a clear governance framework that sets out expectations for different supplier tiers.

2. Standardise Without Overengineering - Create consistent templates and tools for performance reviews, KPIs, meeting agendas, and issue tracking. The goal isn’t to constrain teams, but to give them a solid foundation to work from. Keep it simple and adaptable.

3. Centralise and Digitise Where Possible - Invest in platforms that allow you to store, access, and analyse supplier data in one place. Even a basic shared dashboard can help highlight trends and risks early. Integration with contract management and risk systems is a bonus. But going back to the above point. Keep it simple and repeatable. If you are using a spreadsheet, ensure suppliers are using the same template and it's stored in a way ripe for analysis.

4. Build Governance into the Rhythm of the Relationship - Regular performance reviews, joint business planning sessions, and feedback loops should be part of the relationship, not an afterthought. Put them on the calendar and stick to them. Create a shared view of success.

5. Enable Your People - Governance works when those involved in supplier relationships feel confident, equipped, and empowered. Provide training, communities of practice, and coaching for supplier managers so they can do the work well and consistently.

6. Make It a Two-Way Street - Governance should never feel like a one-sided audit. When done well, it fosters trust, accountability, and shared ambition. Ask suppliers for feedback on how the relationship is managed. Co-create KPIs. Celebrate achievements as well as raising issues.

Final Thoughts

Looking back, that early experience of trying to map the supplier performance landscape was frustrating but invaluable. It showed me just how easy it is for governance to become an afterthought in the complexity of modern supply chains. But it also taught me that with some structure, consistency, and commitment, it’s possible to turn that complexity into clarity.

Supplier governance isn't just a compliance requirement, it's a strategic enabler. Done right, it helps organisations unlock more value from their supply base, manage risk more effectively, and build relationships that deliver over the long term.

And perhaps most importantly, it gives you confidence that when you need the data whether for a board meeting, an audit, or a strategic decision it’s not hiding in someone’s inbox. It’s ready, reliable, and tells a story you can act on.

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If your organisation is grappling with the challenges of inconsistent Supplier Governance, you're not alone. It’s a common struggle in complex environments, but also a powerful opportunity. By putting the right structures in place and investing in the people who manage supplier relationships every day, you can turn governance into a strength, not a stumbling block.

At SRM Tribe, we specialise in helping teams build the skills, systems, and confidence needed to manage supplier relationships strategically. Whether you're just starting to formalise your governance model or looking to elevate what you already have, we're here to support you.

We’re also working behind the scenes on a series of practical templates, guides, and checklists designed to help you tackle these challenges head-on. So do check back soon or follow us to stay updated as new resources become available.