Supplier Relationship Management

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.

Suppliers will be positioned into 4 categories, each with different levels of management.  Each supplier will have their category reviewed regularly.   The categories are;

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 preset 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


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Last Reviewed: 14/01/2016