Online Induction >> Supplier Management System

Supplier Management System: Best Practice Supplier Management Software

What is a supplier management system and why do you need one?

A best practice supplier management system ensures that new and existing suppliers and contracting companies go through an extensive end to end management process covering their initial engagement and induction as a supplier through to ongoing performance and compliance review. A supplier management workflow first begins with an extensive supplier accreditation and approval process to review the safety and risk history of the supplier followed by induction of their staff, a registry of their staff, performance and risk ratings, contacts, work to be carried out, work order history, contracts, project documentation, safety reviews and supplier communications.

Accreditation as a supplier

The first stage is registration and accreditation of the supplier on a range of areas ranging from their provision of service, safety and performance history, financial capability, experience, insurance and evidence of training and certifications.

This workflow involves new suppliers registering online and progressing through a supplier prequalification accreditation form where they will go through an extensive supplier questionnaire. This might be for a sole trader or a representative of a supplier company. Once submitted, the supplier accreditation is submitted and awaits approval. There might be a number of areas to clarify or further upload such as evidence of policies, procedures and systems in place or correct copies of insurances and certifications.

Typically, the supplier accreditation questionnaire might include:

- company registration details
- services to provide
- registered business address
- preferred contacts
- accounts details
- safety history
- providing insurances
- service history - relevent experience
- providing certifications and evidence of qualifications and evidence of training
- how to lodge invoices and company level induction

One of the most critical elements of the supplier accreditation is the risk review, safety performance history due diligence and compliance checks of suppliers. To ensure suppliers are insured and that these insurances are valid and hold the correct type of insurance.

Supplier Prequalification

A part of the accreditation process, suppliers go through an extensive prequalification. The supplier prequalification is basically a due diligence on the suppliers safety, risk and compliance history. This process will typically be an evidence based process where the supplier uploads evidence of their own safety systems, processes and procedures as well as evidence of safety history.
For example, prequalification questions might be:

- Does your company have documented procedures for completion of High Risk Work:
- Does your company have documented procedures for safe manual handling:
- Does your company conduct regular internal audits of its own operations:
- Do you undertake safety induction training for your employees and subcontractors:
- In the last 5 years have you been convicted of a WHS breach or been issued with a breach notice by a WHS regulator:
- In the last 5 years have you been convicted of an environmental breach or been issued with a breach notice by the state regulator:

As part of the supplier prequalification process it's important to fully verify and authenticate all performance, compliance and safety information.

Approving the wrong supplier based on the wrong merits could have serious consequences for your organisation.

Make sure that:

Support details confirmed
Service history reviewed
Safety performance is known
Quality history has been reviewed
Staff performance evaluated
Insurance details have been verified
Safety history has been reviewed
Payment details collected and confirmed
Authorised contacts known and approved

Induct all staff from a supplier

All individual staff who work for a supplier that your organisation has engaged should be inducted into your organisation.

Setup a Supplier Management Portal

With your own supplier management system portal, you can setup and manage your own custom supplier management workflows easily and efficiently. No two organisations are the same and so its critical ensure your supplier management system can suit your organisations specific workflows and requirements.

Supplier Management of Performance

Performance review and ongoing evaluation of the supplier is a major element of supplier management once they have been engaged and start performing tasks for your organisation. Using deep intelligence gathering technologies such as our modern supplier management software, you can discover, identify and classify all aspects and concern areas around the performance of suppliers.

New suppliers go to the link and self register
You get a notification when the registration has been successful and is awaiting approval
Easily manage pending approvals
Final registry of compliant suppliers and contractors

Manage work orders, purchase orders and other supplier management options

Once all your suppliers are using a supplier management portal, you can link in uploading purchase orders, invoices, communications, notifications, training and even work requests into a centralised supplier accreditation area.

It can be split up into a supplier request form, prequalification process and then supplier management tools as part of their ongoing business and ongoing compliance. See how our supplier accreditation system can work for your organisations needs by looking at the online demo

Supplier Risk Ratings and risk Profile

On an ongoing basic, suppliers should be rated on their level of risk in relation to their work being conducted and their performance as a supplier and their subcontractors. Rate their risk level, categorise them as a company and their individual staff by high, medium and low.

Try our supplier management software

For a full end to end supplier management platform, try our supplier management software and customise your supplier workflows.

Online Demo
 
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What's New 08/08/2020

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