Workshop on Vendor Qualification: Managing Performance & Contract Compliance

Program overview:

The decisions where to purchase components, raw materials, manufacturing and testing equipment, and even consulting services, need to be well informed and documented through a vendor qualification process. . The way that we approach our procurement has a marked effect on the end result; therefore we have to ensure we use the right processes and criteria to select our suppliers The results of making poor purchasing decisions can lead to situations that impact product quality, regulatory compliance, company profits, and even the reputation of the company.

This program will provide participants with best practices for building a sustainable vendor qualification process. It will also adopt a systematic approach to demonstrate the optimal methods in enhancing vendor performance and ensure contract compliance.

For whom:

This program is designed for 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.

Learning objectives:

At the end of the course, participants will be able to: 

*              structure for a sustainable vendor qualification programme;

*              create checklists and other vendor qualification documents;

*              determine the best potential vendor;

*              list what a potential vendor needs to supply before qualification;

*              estimate costs and time associated with vendor qualification;

*              know common pitfalls to avoid when qualifying vendors;

*              develop meaningful performance measures; and

*              use vendors’ performance results for continuous improvement.

Course outline:

DAY 1 – Vendor Qualification: Compiling an Approved Supplier List

• Determining the goals and objectives of Procurement
• Formulating a proper Procurement strategy
• Involving the end-user in determining the required technologies
• Developing an approved supplier list based on the required technologies
• Compiling supplier selection criteria
• Forming commodity teams to evaluate and provide supply solutions

DAY 2 – Supplier Assessment

• Supplier initial questionnaire
• Detailed supplier investigation
• Quality management systems
• Performing a supplier assessment
• Process capability studies
• Certification of suppliers, ISO Certification
• Setting acceptance criteria
• Engaging the supplier during the tender process

DAY 3 – Supplier Performance: What to Measure? 

• Setting of objectives that are aligned with the

goals of the company

• Characteristics of a good performance measurement system
• Developing a supplier performance system, Sources of data
• Common mistakes in data recording
• 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 behavior
• Supplier recognition
• Punishing bad behavior
• 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 determining the Final Outcome
• Project close-out report
• Time Performance/Quality Cost Lessons learnt

Training Methodology

Lectures, discussions, exercises, case studies, audio-visual aids will be used to reinforce these teaching/learning methods.