Any company involved in the management of third parties for the provision of goods and services, should certainly consider to evaluate, qualify and follow up third parties as it will ensure the company operation to be more resilient.
Auditing your vendors will help to understand their capability:
- Undergoing a vendor audit will help to understand your business partners capabilities and weaknesses, by evaluating resources available and the labour skills.
- Learning more about the vendor goals and objectives will help to understand if business partners are aligned with your company strategy.
Increasing the vendors performance and awareness:
- Sharing about your company objectives by market, by product line or by country will help your vendor to learn about your target and key objectives.
- Sharing Performance indicators (KPIs) as a measurement of the business relation performance will help to set rules by market, product line or by country.
Defining rules and responsibilities:
- Getting written services agreement in place will help to devise the road map for all parties involved about their goals and responsibilities.
- Such Legal terms will allow the vendors to have written guideline to follow when performing a service.
- The vendor will certainly see value in being an active which is bringing value to your company activities.
Monitoring performance:
- Vendor audits meeting shall be the time for all parties involved to share their experience and concerns about any business activities.
- Being opened and looking forward to simply any process or resolved any non-conformities shall be the key concern here.
- Reducing costs is very often linked to the non-conformities, amount of wastes or non-performance, so make things more simple.
