Administrative Support is Necessary to Success

Apr 12, 2016

our company has choices when it’s time to choose contractors and suppliers to work on your projects. You always have the option to run the process, choose contractors and ensure compliance in house, but this can eat into valuable resources over time. Many companies hand off the responsibility to a third party company because the investment becomes more than it is worth.

From the beginning, your supply chain prequalification program must have administrative support. Employees must have resources and training regarding how to deal with suppliers and contractors, and money should be allotted before the project even starts to ensure that nothing is missing from the process. When companies realize that the work is more than should be handled in house, they turn to a prequalification company such as BROWZ to do the sorting work, choose the best suppliers and contractors and ensure that compliance requirements are met throughout the project.

Suppliers versus Staffing

Statistics show that organizations run the risk of accruing substantial losses if suppliers are not prequalified if not selected for a job. A small percentage of money is spent on staffing as opposed to the amount spent on contractors, highlighting the importance of prequalifying suppliers and contractors before they begin work on a project. In order to get administration on board with the process of hiring a third party to handle prequalification, you must first define the benefits of qualifying companies before they begin work for you. 

Some questions to ask and key points to address with administration are:

  • How does the company save money by prequalifying suppliers?
  • What is the immediate benefit behind implementation of a supply chain qualification process?
  • What kind of resources will be required throughout the project to keep the supply chain in compliance with rules and regulations?
  • How does this improve our chances of finishing the project on time and under budget?
  • What qualities/capabilities are most important when searching for a supplier or contractor that fits our needs?

Without a third party involved to manage the process of supplier prequalification and compliance, man hours are spent and wasted manually entering data and checking in on your contractors. With a software solution for supplier qualification, the process is streamlined, freeing your staff and employees up to do their jobs, while contractors and suppliers are kept in check and the project is finished in compliance with your most important requirements.

Conflict of Interest and Bias

The process of keeping suppliers in line and in compliance with regulations is something that will be ongoing throughout the entire project. Using a third party company to approve and qualify your supply chain ensures that any bias or conflict of interest that is involved between your executives or employees and your contractors is removed from the beginning. This guarantees that you get the best contractors for your job without the worry of personal conflicts or difficulties that have no bearing on the work the contractor does for you.

Streamlining Through Technology

In the past, companies have used file folders and spreadsheets to stay organized and on top of supply chain qualification. In today’s world, you simply don’t have that kind of time to waste on keeping your contractors in line. When you enlist the aid of a third party, you gain access to technology that streamlines the process, cuts back on man hours for your employees and automates tasks so that your jobs runs as smoothly as possible.

If you company chooses to handle the process on its own, the cost can be high and will continue to grow over time. Unless your specialty is qualifying suppliers, you are likely putting resources in where they are least effective, and wasting valuable time of your employees to keep the work of your contractors up to your expectations. A third party company like BROWZ comes in with technology already developed to qualify contractors, ensure compliance throughout the process and give you direction in the future when you are hiring for contracted work.

When you are contracting out a job or project, your goal is to ensure the process moves as smoothly as possible from one idea to the next. When administration is on board from the beginning and truly understands the value of implementing a supply chain prequalification process, you minimize the chances of hang-ups that cost you time and money in the future.

Let Us Help

Your job is to minimize risk any time you take on a supplier or contractor to work on a project that represents your company. Whether it seems fair or not, your contractor’s work reflects on your brand and your company’s integrity. Here at Browz, we specialize in solutions that mitigate risks and pair you with suppliers whose vision and values match that of your company’s. Contact us today to learn more.

Not having adequate administrative support can become a large reason why supplier qualification fails. To learn more reasons, see below.