When done correctly, prequalification will reduce company risk, employee stress, and confusion regarding safety expectations. Working with suppliers or third-party contractors to improve business operations and capabilities can certainly have its advantages. It can also have drawbacks often associated with increased exposure to risks.
A very costly mistake for an avoidable scenario. Jim, a site manager hires a contractor for a project at the site he oversees. Knowing there is a risk to the work involved he hires a company from a contact list folder located in the office filing cabinet.
Procurement professionals can leverage their company’s spend through gathered data and safety statistics on their suppliers before they hire. Companies that outsource work tasks to suppliers often devote a lot time and energy trying to decide on which supplier to outsource too. This typically involves a Request for Proposal (RFP) process but what if that can be sped up through contractor data gathered and provided by a prequalification service?
There are a lot of positive takeaways from companies that provide supplier manage solutions. Unfortunately, there are also a lot of frustrations where there shouldn’t be any at all: complicated navigation, overpriced fees, difficult to understand requirements and lack of customer support all play a roll.