{"id":20770,"date":"2020-11-19T16:25:34","date_gmt":"2020-11-19T15:25:34","guid":{"rendered":"https:\/\/www.iungo.com\/vendor-management-supplier-qualification\/"},"modified":"2022-10-07T08:53:34","modified_gmt":"2022-10-07T06:53:34","slug":"vendor-management-supplier-qualification","status":"publish","type":"post","link":"https:\/\/www.iungo.com\/en\/vendor-management-supplier-qualification\/","title":{"rendered":"Vendor Management: supplier qualification"},"content":{"rendered":"<p>[vc_row][vc_column][vc_column_text]<\/p>\n<h3>About supplier qualification<\/h3>\n<p><span style=\"font-size: 17px;\">Supplier qualification is a vital process for a company, as it makes it possible to:<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 17px;\">identify potential risks associated with the supply of materials, components or services<\/span><\/li>\n<li><span style=\"font-size: 17px;\">select suppliers able to meet certain quality criteria<\/span><\/li>\n<\/ul>\n<p>What are the <strong>objectives<\/strong> to be pursued?<\/p>\n<ul>\n<li><span style=\"font-size: 17px;\">Selecting suppliers through active and passive market scouting<\/span><\/li>\n<li><span style=\"font-size: 17px;\">Proceeding to the accreditation of suppliers (with high professional skills, suitable quality standards)<\/span><\/li>\n<li><span style=\"font-size: 17px;\">Guiding buyers in their future actions to identify the best bid list (a list of suppliers of materials vying for a project)<\/span><\/li>\n<li><span style=\"font-size: 17px;\">Identifying, proposing and monitoring supplier growth paths in order to increase competitiveness within the class of goods<\/span><\/li>\n<li><span style=\"font-size: 17px;\">Providing objective assessments as an input for supply risk management<\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<h3>How and what<\/h3>\n<p>The supplier <strong>search method<\/strong> must be based on:<\/p>\n<ul>\n<li><span style=\"font-size: 17px;\">transparency at all stages of the process<\/span><\/li>\n<li><span style=\"font-size: 17px;\">lawfulness and fairness<\/span><\/li>\n<li><span style=\"font-size: 17px;\">assurance of process integrity<\/span><\/li>\n<\/ul>\n<blockquote><p><span style=\"font-size: 17px;\">Some examples of <strong>features<\/strong> to look for<\/span><\/p>\n<ul>\n<li><span style=\"font-size: 17px;\">care for the health and safety of workers<\/span><\/li>\n<li><span style=\"font-size: 17px;\">respect for the environment<\/span><\/li>\n<li><span style=\"font-size: 17px;\">technical skills<\/span><\/li>\n<li><span style=\"font-size: 17px;\">economic\/financial soundness<\/span><\/li>\n<\/ul>\n<\/blockquote>\n<p>Adopting these search methods to find suppliers with the desired features leads to growth, to a <strong>continuous improvement<\/strong> of standards: better performances translate into better results.<\/p>\n<h3>Kraljic Matrix for framing supplier qualification<\/h3>\n<p>One of the tools that can be of support in differentiating the purchasing portfolio is the <strong>Kraljic matrix<\/strong>, which makes it possible to define the best purchasing strategy.<\/p>\n<p>The Kraljic matrix is a tool for mapping goods classes into <strong>4 categories<\/strong> (strategic, leverage effect, bottleneck and non-critical) based on 2 variables:<\/p>\n<ul>\n<li><span style=\"font-size: 17px;\">strategic importance of purchases (value and impact on profit)<\/span><\/li>\n<li><span style=\"font-size: 17px;\">complexity of the reference market (level of availability and supply risks)<\/span><\/li>\n<\/ul>\n<blockquote><p>The characteristics of the 4 classes:<\/p>\n<p><strong>Non-critical<\/strong>: components that have a low impact on the company and can be found abundantly and\/or in low risk markets.<\/p>\n<p><strong>Leverage<\/strong>: important for the company (with a high impact on profit) but easily available, located in low-risk markets with abundant supply (non-turbulent supply markets).<\/p>\n<p><strong>Bottlenecks<\/strong>: subject to bottlenecks, with a low impact on profit in financial terms, but where continuity of supply is at risk.<\/p>\n<p><strong>Strategic<\/strong>: important for the company in terms of economic impact and supply conditions from complex and\/or risky markets<\/p><\/blockquote>\n<h3>Instrument application<\/h3>\n<p>The procedure should have 4 steps:<\/p>\n<p><span style=\"font-size: 17px;\">1) <strong>Choice of factors<\/strong> &#8211; Defining which factors have an impact on your final product and which ones can cause a market risk (thus defining the 2 dimensions of the matrix).<\/span><br \/>\n<span style=\"font-size: 17px;\">2) <strong>Weight allocation<\/strong> \u2013 to factors, objectively and consistently, so as to obtain the placement of the class in the matrix quadrants<\/span><br \/>\n<span style=\"font-size: 17px;\">3) <strong>Evaluation<\/strong> of factors by means of scaling<\/span><br \/>\n<span style=\"font-size: 17px;\">4) <strong>Analysis of the results<\/strong> in order to highlight any misalignments with what was expected<\/span><\/p>\n<p>To proceed with the supplier accreditation process, the selection criteria must first be defined. Naturally, these criteria are specific by type of purchase and company.<\/p>\n<p>Then the data must be collected. It is important to acquire only<strong> necessary and manageable<\/strong> information, taking into account the resources available, so as to be able to keep up to date at all times.<br \/>\nThe most common tool for this is a <strong>questionnaire<\/strong>, both for pre-qualification and for audit. Another instrument that is taking hold is <strong>digital visits<\/strong>, instead of physical ones.<\/p>\n<p>The last stage is the evaluation of the information collected. The criteria and answers to the questionnaires should be weighed and differentiated in line with the class of goods.<br \/>\n[\/vc_column_text][\/vc_column][\/vc_row][vc_row][vc_column][vc_empty_space][vc_column_text]<\/p>\n<p style=\"text-align: center;\"><span style=\"font-size: 17px;\">FIND OUT HOW IUNGO HELPS YOU IN SCOUTING FOR SUPPLIERS<\/span><\/p>\n<p>[\/vc_column_text][vc_empty_space][vc_btn title=&#8221;SCOUTING WITH IUNGO&#8221; align=&#8221;center&#8221; link=&#8221;url:https%3A%2F%2Fwww.iungo.com%2Fen%2Fdigital-procurement%2Fsourcing%2F|&#8221;][\/vc_column][\/vc_row]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>[vc_row][vc_column][vc_column_text] About supplier qualification Supplier qualification is a vital process for a company, as it makes it possible to: identify [&hellip;]<\/p>\n","protected":false},"author":2084,"featured_media":25317,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_vp_format_video_url":"","_vp_image_focal_point":[],"footnotes":"","_members_access_role":[],"_members_access_error":"","_ppma_block_editor_authors":""},"categories":[253],"tags":[310],"ppma_author":[316],"class_list":["post-20770","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog-en","tag-vendor-management-en","author-et_1un90"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Vendor Management: suggestions about supplier qualification<\/title>\n<meta name=\"description\" content=\"What is supplier qualification? 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