Managing Vendor Qualification, Performance & Contract Compliance

Introduction

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.

This LAKESHORE ISL Managing Vendor Qualification, Performance & Contract Compliance training seminar will use the system approach to demonstrate the optimal method in vendor qualification, enhance performance and ensure contract compliance.

This LAKESHORE ISL training seminar provides both strategic and tactical insights into:

  • How wide an adequate number of suppliers to maintain
  • Selecting only the best suppliers to participate
  • How to measure their performance objectively
  • To ensure that they perform according to expectations

Objectives

Participants attending this LAKESHORE ISL training seminar will:

  • Understand to avoid combative relationship with their suppliers and vendors
  • Establish the goal in understanding what value-add is a given by the vendor
  • Establish the vital steps in a proper supplier evaluation
  • Matching customer requirement with the correct supplier segmentation
  • Develop meaningful performance measures
  • Learn how to use those performance results for continuous improvement

Training Methodology

Gagne’s nine steps in retention to transfer of knowledge to work practice is adopted through adult learning facilitation. Facilitation by an experienced practitioner and consultant, where individual and team exercises, and group discussions covering the many topics presented in the training course.

Organizational Impact

Your organization will benefit by:

  • Ensuring suppliers performance
  • Higher customer satisfaction
  • Evaluate and identify to remove hidden cost drivers
  • Inventory optimization with supplier involvement
  • Reduced total cost

Personal Impact

  • Gain competency in the work task
  • Understanding of the importance of supplier / vendor relationship
  • Supplier / Vendor segmentation to better manage
  • Productive evaluation

Who Should Attend?

  • Contracts, Procurement and Project personnel
  • Engineering, Operational, Quality and Maintenance personnel
  • And all others who are involved in interfacing with contractors or suppliers in the acquisition of materials, equipment, parts and services or anyone who wants to improve supplier performance and gain successful outcomes from contracting situations

Seminar Outline

DAY 1

Vendor Qualification: Compiling an Approved Supplier List

  • Distinguish between Supplier and Vendor
  • Determining the Goals and Objectives of Procurement
  • End-user Involvement in Earlier Supplier Management
  • Compiling Supplier Selection Criteria
  • Developing an Approved Supplier List
  • Supplier Segmentation

DAY 2

Supplier Evaluation and Assessment 

  • Vendor / Supplier Pre-qualification Questionnaire
  • Supplier Evaluation
  • Quality Management Systems
  • Performing a Supplier Assessment
  • Certification of Suppliers
  • ISO Certification
  • Setting Acceptance Criteria

DAY 3

Supplier Performance – What to Measure?

  • Setting of Objective that are aligned with the Goals of the Company
  • Characteristics of a Good Performance Measurement System
  • Developing a Supplier Performance System
  • Supplier Performance Management and Metrics
  • 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
  • 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