Supplier and vendor management is a key requirement to the health of construction projects; it impacts Project costs, schedules, and quality of the deliverables.
Tracking these processes is a big priority for Construction Companies and usually is included in Quality Control Procedures like ISO 9001: 2008 Quality Management Systems QMS . But sometimes even though the process is well documented, Contractors don't go the extra mile to make sure that these systems are properly implemented and followed.
Below are key factors that in my opinion are important for the proper implementation of a supplier evaluation system
- Who should do the evaluations
- Accurate Metrics
- The right technology
- The right audience
There are established metrics in the Industry to evaluate vendors and suppliers on different indicators like
- Cost
- Delivery
- Service
- Quality
Some of these metrics are
- On time delivery
- Quick response time in case of emergency, problem or special request
- Quality performance
- Quantity precision
- Service performance
- Cost of product
- Communication systems
- Flexibility to respond to unexpected demand changes
- Willingness to change their products and services to meet the firm's changing demand
- Use of advanced technology
- And many more
Senior management should understand what key indicators are vital to the success of their operations and invest in right technologies that will allow the dashboarding of these key indicators and create an adequate visibility so that key decision makers can have the most up to date information when selecting vendors and suppliers.
There are many vendors that have developed applications that address Supplier Management and integrate with existing ERP or other financial applications; also if you have developers on staff you can create your own custom applications.
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