[Supplier] A supplier has good pricing but weak delivery performance. How do you evaluate whether to keep using them?

Example Answer

I would first quantify the real cost of the weak delivery performance. If we are constantly expediting, carrying extra safety stock, or missing internal deadlines because the supplier is unreliable, then the apparent savings may not be real. I want the problem measured before I decide whether this is a tolerable issue or a reason to change course.

Then I would look at whether the supplier can improve and whether the business has realistic alternatives. Sometimes the answer is to reset expectations and hold the supplier to a recovery plan. Sometimes the answer is to reduce exposure over time. The decision should be based on evidence, not irritation.

I would compare the same demand, quality and period, separating observed costs from estimates. Purchase price, expedited freight, inspection, inventory carrying costs and disruption can matter, but I would avoid counting the same loss twice. If disruption probabilities are uncertain, I would show scenarios and the acceptance limits instead of inventing a precise risk-adjusted saving.

Common Poor Answer to Avoid

"If the price is good, I would probably keep them and just push them to do better."

Why this works

It shows sequencing, tradeoff awareness, and practical communication instead of generic procurement language.