Evaluating the Subcontracting Function: A Customer Perspective

Author(s):

Jeffery A. White, C.P.M.
Jeffery A. White, C.P.M., President, J.A. White & Associates, Columbia, SC 29212, 803/407/1399, jawhite@jawhite.com

88th Annual International Conference Proceedings - 2003 - Nashville, TN
Abstract

Major process reviews or audits of the purchasing function can be considered as opportunities for Purchasing and Subcontracting departments to benchmark and showcase its processes against customer and executive management expectations. In the public procurement sector, it is mandatory for major prime contractors to undergo such detailed reviews of their subcontracting functions. In other situations, corporate management or customers mandated such reviews. Traditionally, purchasers have relied upon corporate internal audit groups or the customer’s process review personnel, such as Contractor Purchasing System Review (CPSR) analysts, to accomplish this task. In the midst of the corporate accounting scandals of 2001 and 2002, there will be a greater need for organizations to allow customers full access to its operations and records. But, are there opportunities for purchasing management to not only conduct their own internal audits, but to have those audits serve as substitutes for other internal and external audits? Can purchasers and their customers truly benefit from “proactive” auditing, whereby the purchaser uses selfassessments as catalysts for re-engineering and continuous process improvements? Can these reviews be used to establish and measure department metrics?

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