Measuring And Managing Suppliers’ Performance

Course Code: PM19

Course Objective

  • Creating effective vendor performance frameworks
  • Integrating vendor performance management throughout the procurement cycle.
  • Developing understanding of key legal principles within vendor management.
  • Reviewing and implementing changes to better protect your organisation in vendor performance management.
  • Identifying and managing key risks (product, price, people, place or procurement).
  • Reducing risks in supplier contracting and outsourcing.
  • Acquiring comprehensive methods that manage vendor risks to protect your contracts and profit margins.
  • Improving vendor negotiation and management skills that adds tangible value and results.
  • Identifying strategic partnering and continuous improvement opportunities.


Target Audience

  • This course is suitable for procurement practitioners, quality assurance and supply chain professionals who have a direct responsibility for procurement and or supply chain and supplier relationship management, or delegates from a supplier, marketing and governance perspective, such as key account managers, bid management teams or commercial management who are seeking to develop improved understanding of how supplier performance is measured and managed.


Course Outline

  • The Key Principles of Effective Vendor Performance Management
  • Here we examine the key principles of Vendor Performance management & Vendor Relationship management throughout the procurement cycle
  • Aligning procurement and supplier management with organizational goals
  • Development of vendor management activities – Sourcing/Evaluation, Pre- Contract award stages
  • The use of E-Procurement in sourcing and vendor management – how to implement, manage and develop vendor management within the e-procurement environment
  • Effective use of data within vendor management
  • Practical exercise: “Penalties & Own Goals” – Creating the right balance
  • Case study review, analysis & critique:  The Gartner report
  • Practical Vendor Management – Sourcing & Selection Stages
  • In our second session, we explore the key elements and tools that can be employed at the sourcing and selection stage to support effective vendor management
  • Defining strategic and tactical spend categories and why this is important
  • The 3C’s of Sourcing & Selection
  • Single source v multiple source – practical choices and impacts
  • New supplier sourcing funnel- managing potential new suppliers & preferred supply listings.
  • Pre tender preparation
  • Developing a post tender vendor management strategy before we get there
  • Tender project management – the 5 phases of tender management
  • Effective supplier evaluation including scoring systems, weighting and evaluation process
  • Supplier auditing & global quality and environmental standards compliance
  • Case Study review, analysis & critique:  “Engineering Success”
  • Practical exercise: Creating sourcing strategies to optimize vendor contribution
  • Practical Vendor Management – Contract Award Stage
  • Here we explore the key legal aspects of vendor management and examine the key techniques we can employ when developing the contractual framework for vendor performance management
  • Principles of international law – overview of key legal principles when creating contracts
  • Constructing effective contracts
  • Excusable and non excusable delays
  • So what about vendor sub contractors?
  • Developing effective supplier service level agreements
  • Constructively debriefing unsuccessful vendors
  • Vendor implementation planning and overcoming challenges
  • Creating effective data sharing processes to support vendor performance
  • Case Study review, analysis and critique: LD’s, PD’s & LADS
  • Practical exercise: Creating SMART Contracts & Service Level Agreements (SLA)
  • Continuous Improvement Opportunities
  • In our final session of the programme, we examine tools and techniques for further development and enhancement of the vendor relationship
  • Establishing baselines for quality, cost & delivery (QCD)
  • Developing supplier scales of engagement – defining strategic partner opportunities
  • Developing regional supplier capacity building
  • Creating supplier development milestones
  • Effective reporting to internal stakeholders
  • Supplier relationship & performance management – creating additional value whilst reducing cost
  • Case Study analysis includes: The Cox Model
  • Practical exercises: “Bringing everything together” – Business simulation covering communication, management and development of vendor performance structures

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Date & Location

Date : 07 April 2019

Duration : 5 days

Place : Munich -Germany

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Date : 18 August 2019

Duration : 5 days

Place : Istanbul

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Date : 17 November 2019

Duration : 5 days

Place : Kuala Lumpur

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