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Why conduct supplier accreditation assessments?

Why conduct supplier accreditation assessments?. Executive Accreditation Specialists (Pty) Ltd November 2010. Index. Purpose Process Value proposition. Purpose. Optimization of supplier list (classification, grouping, etc.)

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Why conduct supplier accreditation assessments?

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  1. Why conduct supplier accreditation assessments? Executive Accreditation Specialists (Pty) Ltd November 2010

  2. Index • Purpose • Process • Value proposition

  3. Purpose • Optimization of supplier list (classification, grouping, etc.) • Establish long term relationships with preferred suppliers (identify relationship management style for different classifications) • Identify potential areas of risk associated in dealing with a specific supplier (short comings identified during assessment visit, aspects which are non-negotiable, etc.) • Implement mitigations in order to minimize the identified risks (increase inspection interval, increase random sample, etc.)

  4. Process • Classification of supplier list (Shop, Leverage, Critical and Strategic grouping) • Determine format of accreditation required (matrix total, past experience, etc.) • Conduct accreditation (Pre-qualification Assessment, Verification Assessment, Diligent Assessment) • Formulate report (executive summary with findings and recommendation, detail if required) • Present recommendation to client (discuss details of report, provide documented proof of findings, etc.) • Follow-up (based on assessment outcome and if required by client)

  5. Value proposition • Only accredited suppliers to be registered on supplier base (optimization of supplier list, reduce elements of risk, etc.) • Reduce the element of risk in having to deal with suppliers not accredited (suppliers are approved for specific categories, improve controls and mechanisms, etc.) • Not all suppliers need to be accredited on the same frequency (grouping of associated supply and/or services, even spread of resources, etc.) • Encourage/enable the development of long term relationships with selected suppliers (opportunity to negotiate better terms and conditions, economies of scale, improve support, etc.)

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