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.
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.