
It is essential that before shortlisting a vendor (for calling for negotiations), proper evaluation of vendor is done systematically on important parameters ,particularly for inducting vendors for high value recurring buying of materials or services or for construction projects.
- Technical infrastructure ie use of suitable equipments, tools, jigs & fixtures & appropriate licensed software for production, installation & servicing of material to be purchased.
- Process controls at vendor‘s end for ensuring quality during production, installing & servicing or for rendering services under scope
- System for compliance with reference standards/quality plans
- Monitoring & control of process parameters & end product requirements or for services requirements
- System for approval of manufacturing or service rendering processes & equipment
- Criteria for workman ship & documentation
- Equipment maintenance system to ensure process capability
- Leadership profile
- International /National Quality certification of the company and it's products and services
- Global footprint in terms of manufacturing operations or offices or customers or vendor associates.
- Ability and reputation in meeting legal compliances
- Skill & knowledge of vendor ‘s teams
- Experience in supplying similar materials or services to corporate clients/exports etc
- Industry standing/reputation /brand name etc
Unethical / Fraud prone practices
- Missing out assesment on many parameters by Assigning junior team members or inappropriately skilled persons thereby potential induction of non capable vendor/consultant or contractor .
- In collusion with potential vendor, suppressing actual observations in vendor assessment report by assesing team member and giving biased opinion to shortlist preferred vendor are unethical practices
- Senior management instructing vendor shorlisting team to include vendor / consultant/relative who are their friends or relatives and asking them to skip their formal techno-commercial evaluation.
Shortlisting a vendor is as critical and important as calling an employee for interview without assesing his/her qualifications and capabilities. Shortlisting and calling a vendor for negotiations ,without proper evaluation is all the more important if the vendor/consultant or contractor is going to be associated for medium or long term supply of inputs /products or rendering of services.
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