EFFECTIVE SUPPLIER / SUBCONTRACTOR MANAGEMENT
Most businesses will use Suppliers and Sub-Contractors to: –
- Provide additional capacity within their workforce
- Fill gaps and supplement their business with additional expertise
- Enable them to meet the ongoing needs of their client base
- Provide Consumables and Equipment for use and installation
They both provide essential products and services vital to fulfil customers’ needs which is why it is critical to implement an effective process to manage the risk.
Without an effective process, the risk of a problem occurring is high and the impact this can have on your business can be profound.
What if I don’t have an effective Supplier Management Process?
- Inadequate experience and qualifications could result in poor workmanship and poor-quality products & services.
- Health and safety concerns resulting in serious accidents and incidents or complaints
- Sub Standard Consumables and Equipment
- Non-compliance with regulatory requirements
- Legal issues
- Reputational damage with customers and clients
- Financial loss
What is an effective Supplier Management Process?
Establishing an effective Supplier / Subcontractor Management Process and incorporating this into operational processes can help you to manage the risk, protect your brands reputation and have confidence in the sustainability of your products or services.
The process doesn’t have to be complicated. This can be as simple as asking sector specific questions, collating documents, and monitoring performance. This is something that needs to be determined based on your business requirements and the level of risk. This is called your selection criteria and could include the following:
- Evidence of insurance, for example employer’s liability or professional indemnity
- Certificates evidencing qualifications, training, and accreditations
- Documented policies such as Health & Safety, Modern Slavery and Data Protection
- Details of previous performance, accidents, incidents, regulatory breaches, prosecutions
- Details of previous years turnover to check for financial stability
- Conducting inspections to monitor performance/quality
Benefits of a Supplier Management Process:
- Improved Risk Mitigation
- Continual Improvement with business operations
- Full visibility of Supply Chain
- Collaborative relationships with Suppliers/Sub-contractors
- Regulatory Compliance
- Assurance of Quality products and services
- Instil confidence in Supplier Management for Customers and Clients
If you don’t feel that your business / team have the capacity and / or capability to implement and manage an effective Supplier Management Process then Functio offer a variety of solutions that can help you and your business such as establishing and implementing a Supplier/Subcontractor Management Process, creating vetting forms and determining appropriate selection criteria, systems to collate and review documentation and periodic checks to evaluate performance.
Feel free to get in touch if you would like to find out how we can help you!