View Full Version : Approved Vendor Lists
07-13-2009, 09:47 PM
Does anyone belong to a company that uses an Approved Vendor list? If so, do you have a process that will help remove a vendor from that list? I have a vendor I'd like to remove, but don't know how I should begin a process that will help set a precedent on what to expect.
07-18-2009, 03:33 PM
Hello, we are putting something together ourselves. Have you come across anything to date?
Is your reason for removing a supplier from the approved list related to their performance?
I would assume there must be at least a semi-formal process for adding a supplier to the approved list. That would suggest someone initiated a removal policy as well. There should have been some form of vetting process before they were added to the approved list.
There should be some form of supplier performance system within the company that outlines acceptable and unaccpetable performance of suppliers. At the very least you should document your reasons for wanting to remove a supplier from the list and present it to the party who controls the approved supplier list. If you have done business with this supplier for any length of time it would be appropriate to document your issues and present them to the supplier to allow them to rectify the situation prior to being removed fromt the list or at least outline action necessary for them to be returned tot he approved list.
08-06-2009, 03:21 PM
The decision process for adding and removing vendors would be something each organization establishes internally. It's typically based on poor performance, pricing, financial health, or bad behavior.
For us, we realized that tagging a vendor as "undesireable" was easy, but preventing Buyers and Sourcing Managers from continuing to use them was more difficult. We already had in place a "watch list" to highlight problem vendors, but this was a passive approach that did not systematically prevent purchases.
We turned to our purchasing system to block vendor records from all purchasing functionality. When any of these vendors are selected, an alert is sent to the Buyer and no purchase can be performed. From there, the Buyer must submit a request to reinstate the supplier which goes through an approval process.
I hope this helps and let me know if you'd like to discuss.
08-12-2009, 12:12 PM
I agree with John. To keep it simple, one can block the vendor/supplier with a note stating why this vendor is blocked. Once this is done, there is no procurement activities can take place against that vendor unless department head request to unblock that vendor.
We block vendors for a reason but sometimes we block vendors if we have not done business with a particular vendor for 3-5 years. This way, it helps keep our data base current.
08-27-2009, 07:22 PM
Our organization (mid-size, healthcare administration) is currently undergoing a quality improvement project: looking at how we can leverage our enterprise power to get the best rate for various products and services. Initially, we are concentrating on IT, Office Services / Operations and Marketing / Publications.
We have been working with these small groups (independent of one another): Our first meeting consisted of these participants voicing and ranking (in order of importance) their critical attributes to selecting a vendor. It was interesting to note the differences of the teams. (Ex: IT put "cost" as the most important reason to select a vendor, Marketing put "meet tight deadlines" as the most important reason to select a vendor, as an example.)
From the rankings and scoring of the vendors against these critical attributes (ex: quality, cost, meet deadlines, knowledge of our company, etc.) we are working with these small teams to decide if to: Keep the vendor (and if so, why? Are they under contract? Would we bid these jobs once more when the contract is up? etc) or Remove the vendor (and if so, why? What would we do w/the business?)
Our goal is to get a preferred vendor list.
It's been an interesting process so far - let me know if you have any questions or want to talk further.
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