Course 4: Supplier management

Selecting A Vendor: :

When choosing a vendor, businesses should consider various factors

All of these factors are important to ensure that the vendor selected is a reliable and professional partner in the business's success.

Selecting a vendor is a crucial activity for any business, as vendors provide both direct and indirect purchases necessary to produce and run a business.

ability to supply all required products

lexibility to allow changes in orders

ability to constantly supply products or services

substantial catalogue of products or services

vendor's years in business

prices

delivery times

terms of business, and customer service.

Navigating supplier relationships in the COVID-19 era:

COVID-19 is causing ruptures in the supply chain, leading to canceled or ignored contracts, highlighting the importance of buyer-supplier relationships.

Procurement and supply chain management are more important than ever before.

In this emergency, relationships are more important than written contracts, but it's crucial to analyze key supplier contracts and pay attention to force majeure clauses.

The new normal is developing in business, and waiting for things to return to the way things were before the pandemic is not an effective or realistic strategy.

Simple rules to follow in preparing a SOW and a contract:

Clearly specify the objectives to be achieved

Seek input from the right people at the right time

Develop a well-organized table of contents

Specify the project plan, schedules, and milestones

Link payments to performance or progress

Specify where the deliverables will be performed

Learn from and do not repeat mistakes

Avoid incorrect, inconsistent, or contradictory statements

Define what is to be performed

Five Easy Steps To Risk Management in Procurement

  1. Risk Ranking
  1. Risk Mitigation
  1. Risk Analysis
  1. Risk Monitoring
  1. Risk Identification

How medical supply chains can diversify beyond COVID- 19

The demand for some medical supplies has skyrocketed during COVID-19, resulting in shortages.

About 80% of active pharmaceutical ingredients (API) come from abroad, typically China and India, and sourcing from one region creates a high risk

The pharmaceutical industry's motivation is lowering costs in the short term, which results in supply problems during emergency events like COVID-19.

Globally sourcing should look like a stock portfolio, not rely heavily on one region.

Healthcare systems need to have emergency plans that include mitigating shortages of medical supplies.

Producing domestically and globally is necessary to prevent shortages. It's essential to look for partnerships to produce domestically and use the global supply chain.

To evaluate and select a supplier

Methods

Third-party evaluations

Preferred lists

Supplier visits

Key supplier evaluation criteria

For financial capability

quality

performance

systems/philosophies

cost

management capability

customer focus

employees

It is also important to assess the supplier's financial stability and liquidity to ensure they can meet their financial obligations and invest in the future

Which can be done by reviewing their financial statements, credit reports, and other public records, as well as conducting interviews with the supplier's financial team

It is important to check the supplier's financial situation

Additionally, it is recommended to establish a risk management plan to mitigate any potential financial risks that may arise during the supplier relationship.

6.Adjust processes and policies to ensure more effective risk management.

7.Develop a plan for risk prevention and resilience after an incident

  1. Ensure that every employee has a clear understanding of the policies and procedures related to risk management and is trained to implement them.

9.Identify potential risks and assess their impact on the company.

  1. Take measures to minimize risk or maximize resilience after an incident.