We have a responsibility to manage our supplier base and are committed to ensuring that all contracts continue to deliver best value throughout the contracted period. This is achieved through constant review and establishment of strong effective relationships with suppliers that are focused on achieving continuous improvement for all parties concerned.
It is the responsibility of the contract owner to follow this procedure and report accordingly. They have responsibility for coordinating the outputs of the meetings, overseeing the ongoing process and reporting to the relevant stakeholders and leads, both by exception (where appropriate) and by Supplier Management Report.
Core Suppliers will be positioned into 4 categories each with different levels of management. Each supplier will have their category reviewed after each Supplier Review Meeting. The following matrix will be used to identify the classifications:
Strategic: Suppliers who have a High Supply risk and a high-Cost Impact will be given an A classification.
Bottleneck: Suppliers who have a low-cost impact and a high supply risk will be given an A classification.
Leverage: Suppliers who have a High-Cost Impact and low Supplier Risk will be given a B classification.
Non-Critical: Suppliers who have a low-cost impact and a low supply risk will be given a C classification, where it is deemed necessary to have enhanced supplier management at the discretion of the contract owner.
Supplier Reviews
Supplier reviews will take place on a regular basis subject to the supplier classifications assigned above
Class A Suppliers – quarterly basis
Class B Suppliers – half year basis
Class C Suppliers – annual basis
A pre-set agenda, which will be shared with the supplier before the meeting, must be used for the reviews and must include, but not be limited, to the following:
- Complaints
- Key Performance Indicators
- Accounts Payable Issues
- Development Areas
- Sustainability
- Resillience
