A commodity manager for manufacturer XYZ Inc. is conducting negotiations on a long-term contract with DEF, a key strategic supplier. DEF’s delivery performance is rated at 73%, which is below the divisional goal of 98%. For this reason, XYZ’s operations manager wants to drop DEF and find a new supplier. The commodity manager, however, is not in agreement with the operations manager, and notes that as part of the long-term agreement, DEF will provide a 15% cost reduction, which is critical to achieving the cost-reduction goal for the division for the current year. D. Postpone contract negotiations to review the contract with the operations manager to ensure improved performance. Justification: Purchasers usually review contracts to evaluate potential suppliers acrossmultiple categories using their own selection criteria with assigned weights. Purchasers that need consistent delivery performance with short lead times to support a just-in-timeproduction system might emphasize a supplier’s scheduling and production systems.