Managing Vendor Qualification, Performance & Contract Compliance

Suppliers and vendors play a key role in the company's success. Having a formalized system in place to track and evaluate supplier and vendor performance is essential to the smooth operation and profitability of the company. 

Successful companies embrace their suppliers and vendors, viewing them as partners in helping to grow the business; therefore, we have to ensure we use the right processes and criteria to select our suppliers.

The training course will explain best practices for building a sustainable vendor qualification process. It will also adopt a systematic approach to demonstrate the optimal methods in enhancing vendor performance and ensure contract compliance.

 

Course Objectives of Managing Vendor Qualification, Performance & Contract Compliance

• Structure for a sustainable vendor qualification programme

• Checklists and other vendor qualification documents

• How to determine the best potential vendor

• What a potential vendor needs to supply before qualification

• How to estimate costs and time associated with vendor qualification

• Common pitfalls to avoid when qualifying vendors

• Develop meaningful performance measures

• Learn how to use those performance results for continuous improvement

 

Day 1
Vendor Qualification: Compiling an Approved Supplier List

• Determining the goals and objectives of Procurement

• Formulating a proper Procurement strategy

• Involving the end-user in determining the required technologies

• Developing an approved supplier list based on the required technologies

• Compiling supplier selection criteria

• Forming commodity teams to evaluate and provide supply solutions

Day 2
Supplier Assessment

• Supplier initial questionnaire

• Detailed supplier investigation

• Quality management systems

• Performing a supplier assessment

• Process capability studies

• Certification of suppliers

• ISO Certification

• Setting acceptance criteria

• Engaging the supplier during the tender process

Day 3
Supplier Performance - What to Measure?

• Carrot or stick?

• Setting of objective that are aligned with the goals of the company

• Characteristics of a good performance measurement system

• Developing a supplier performance system

• Sources of data

• Common mistakes in data recording

• Implementing the system

Day 4
Supplier Performance - Interpreting the Results

• Rating the individual supplier

• Ranking your suppliers

• Disseminating the results: what to do and what not to do

• Rewarding good behaviour

• Supplier recognition

• Punishing bad behaviour

• Corrective Action Procedures

Day 5
Remedies for Breach of Contract

• What constitutes a breach?

• The different types of breaches

• The different remedies available

• Determining the quantum of damages

• Liquidated damages

• Equitable damages

• Court injunction

• Project close-out report

• Time

• Performance/Quality

• Cost