Vendor Qualification, Performance Management, and Contract Compliance

Introduction:

Procurement challenges, such as timely deliveries, budget adherence, and performance expectations, require effective strategies and processes. The Vendor Qualification, Performance Management, and Contract Compliance course aims to address these challenges comprehensively by employing best practice guidelines in vendor qualification, performance improvement, and contract compliance. The seminar integrates theory and practice, emphasizing the importance of understanding and adhering to contracts as a key aspect of vendor management.

Objectives:

By the end of the Vendor Qualification, Performance Management, and Contract Compliance course, participants will be able to:

• Identify different strategies for supplier evaluation.
• Match market segmentation to customer demands.
• Create relevant and useful performance standards.
• Utilize performance information for ongoing enhancement.
• Assess the quantity of available suppliers.
• Select the most relevant suppliers.
• Objectively evaluate supplier performance.
• Ensure suppliers meet the set performance standards.

Training Methodology:

• Case studies
• Simulations
• Workshops
• Mock sessions
• Group discussions

Course Outline

Unit 1: Vendor Qualification: Compiling an Approved Supplier List

• Establishing procurement goals and objectives.
• Devising an effective procurement strategy.
• Engaging end-users in specifying technology needs.
• Creating an approved vendor list based on specified technologies.
• Developing a supplier selection matrix.
• Forming commodity teams for evaluation and supply solutions.

Unit 2: Supplier Assessment

• Initial supplier questionnaire.
• Detailed questioning of suppliers.
• Quality systems assessment.
• Conducting supplier evaluations.
• Analyzing manufacturing and process capabilities.
• Supplier approval and ISO.
• Establishing acceptance levels.
• Setting win-win conditions in the tendering process.

Unit 3: Supplier Performance – Measurement Criteria

• Conventional vs. unconventional approaches.
• Setting propositions that align with company objectives.
• Characteristics of a well-designed performance evaluation.
• Constructing a supplier performance evaluation system.
• Managing data channels and addressing data errors.
• Implementing the evaluation system.

Unit 4: Supplier Performance – Understanding the Outcome

• Appraising specific supplier performance.
• Ranking suppliers.
• Communicating outcomes: dos and don’ts.
• Encouraging and rewarding desirable actions.
• Discouraging undesired actions.
• Procedures for corrective actions.

Unit 5: Breach of Contract Remedies

• Identifying actions deemed as breaches.
• Types of breaches and possible actions.
• Calculating damages and contractual liquidated damages.
• Obtaining restraining orders from courts.

Unit 6: Bringing Out the Conclusion

• Final report on project termination.
• Reviewing schedule, performance, quality, and expenses.
• Addressing mistakes and lessons learned.