Overseeing Vendor Qualification, Performance, and Contract Compliance

Introduction

Suppliers and vendors are vital to a company’s success. Implementing a formalized system to track and evaluate supplier and vendor performance is crucial for smooth operations and profitability.

Successful organizations view suppliers and vendors as partners in business growth. It’s essential to employ the right processes and criteria for selecting these partners.

This training course on Managing Vendor Qualification, Performance, and Contract Compliance will utilize a systematic approach to demonstrate effective vendor qualification, enhance performance, and ensure contract compliance.

This GLOMACS course offers both strategic and tactical insights into:

– Determining the optimal number of suppliers to maintain
– Selecting only the most qualified suppliers
– Objectively measuring supplier performance
– Ensuring suppliers meet performance expectations

Objectives

Participants in this course will:

– Learn to foster positive relationships with suppliers and vendors
– Understand the value a vendor adds to the business
– Establish key steps for effective supplier evaluation
– Align customer requirements with appropriate supplier segmentation
– Develop meaningful performance metrics
– Utilize performance results for continuous improvement

Training Methodology

The course will adopt Gagne’s nine steps for knowledge retention and application, facilitated by an experienced practitioner. Participants will engage in individual and team exercises, as well as group discussions covering various topics related to managing vendor qualification, performance, and contract compliance.

Organizational Impact

Your organization will benefit by:

– Ensuring supplier performance
– Increasing customer satisfaction
– Identifying and eliminating hidden cost drivers
– Optimizing inventory with supplier involvement
– Reducing overall costs

Personal Impact

Attendees will gain:

– Competence in managing vendor relationships
– Insight into the importance of supplier partnerships
– Skills in supplier segmentation for better management
– Effective evaluation techniques

Who Should Attend?

This course is designed for:

– Contracts, procurement, and project personnel
– Engineering, operational, quality, and maintenance staff
– Anyone involved in working with contractors or suppliers for materials, equipment, or services, or those seeking to improve supplier performance.

Course Outline

Day 1: Vendor Qualification – Compiling an Approved Supplier List
– Distinguishing between suppliers and vendors
– Determining procurement goals and objectives
– Engaging end-users in supplier management
– Compiling supplier selection criteria
– Developing an approved supplier list
– Supplier segmentation

Day 2: Supplier Evaluation and Assessment
– Utilizing a vendor/supplier pre-qualification questionnaire
– Conducting supplier evaluations
– Understanding quality management systems
– Performing supplier assessments
– Supplier certification and ISO certification
– Setting acceptance criteria

Day 3: Supplier Performance – What to Measure?
– Aligning objectives with company goals
– Characteristics of an effective performance measurement system
– Developing a supplier performance system
– Supplier performance management and metrics
– Implementing the performance system

Day 4: Supplier Performance – Interpreting the Results
– Rating individual suppliers
– Ranking suppliers
– Communicating results: best practices and pitfalls
– Rewarding exemplary performance
– Supplier recognition programs
– Corrective action procedures

Day 5: Remedies for Breach of Contract
– Understanding what constitutes a breach
– Exploring different types of breaches
– Identifying available remedies
– Determining the quantum of damages
– Liquidated and equitable damages
– Court injunctions

Conclusion

This comprehensive training course equips participants with the knowledge and skills necessary to effectively manage vendor qualification, performance, and contract compliance, ensuring enhanced collaboration and success in their procurement processes.