Technology is Necessary to Prequalify Suppliers and Contractors
Mar 01, 2016
When you bring in an outside company to work on any job for your organization, you run certain risks, particularly if that company isn’t prequalified to be safe, reliable and socially responsible. Risks include simple things like delays on the project to major issues like accidents on the job site. When the contractor or supplier is prequalified to work on your project, it helps mitigate risks.
Unfortunately, the supply chain prequalification process can fail if certain things aren’t in place to make it successful. One of the main things that can send the process into failure from the beginning is the lack of the correct technology.
Moving At a Rapid Pace
In today’s world, technology can be outdated within days of being upgraded. Technology is an essential part of maintaining compliance with outside contractors, but if you lack the resources to set and enforce regulations and requirements, the process is frustrating and more of a hassle than it is worth.
In the past, supplier qualification could be managed with file folders, paper documents and spreadsheets, but those days are long gone. Upgraded, sophisticated technology streamlines the system and automated processes are used to guarantee the program runs smoothly. Managing a system this complicated can quickly become a full-time job for an individual that doesn’t have the time or resources to manage it. That’s where a third party company like BROWZ can be beneficial and provide the tools needed to focus on the benefits rather than the cumbersome, tedious tasks.
Choosing a Program
Using a third party company like BROWZ to handle supplier prequalification ensures that your technology is up to date without adding to your already overloaded plate. When facing the issue of technology with a supplier prequalification program, consider the following issues.
- Can the data collected by the new technology be compiled and used to make valuable business decisions?
- Does the solution work for a wide range of suppliers and contractors?
- Is the solution secure and confidential?
- How much control do I have over the solution?
- Will the solution seamlessly work with our current system?
- Is the solution’s infrastructure solid and secure, and what type of backup plan exists in the occurrence of an outage?
- Are my contractors and suppliers given support to learn and use the system or solution?
- During what hours can I access the system?
- Is the solution web-based and user-friendly?
- Is a license required for each user requiring access to our company’s compliance information?
As new software is released and technology is updated at a rapid pace, many companies fail to understand all that a compliance program can do for them. Your goal is to stay up to date on all the tools and resources that simplify the prequalification process without alienating your contractors and suppliers with requirements that are too strict and extreme.
Bigger Company, Bigger Risks
The bigger your company is, the higher the risk of a system failure when inadequate or outdated technology is used to keep contractors and suppliers compliant. A functional software program is your technological way of communicating clear, concise expectations and standards to those you hire to work on your jobs. As clear communication is essential on all levels, updated technology is key to keeping communication lines open and functional throughout the entire project.
Technology can be an asset or a detriment, depending on how it is approached by both sides involved in the prequalification process. With a third party company, technology becomes a solid tool in your arsenal for a successful job or project.
Reduce Risk and Increase Efficiency
When problems arise on the job site and you have to fire and replace a contractor or supplier, your company suffers from unnecessary setbacks that reflect badly on your company or brand, even if it’s not directly your fault. When contractors and suppliers are prequalified with the implementation of a supplier prequalification program, those risks are lowered and everyone benefits. You create lasting relationships with contractors you can use in the future for similar jobs, and your contractors gain a reputation of doing solid work on time.
Managing and qualifying contractors and suppliers on larger projects for larger companies can be a full-time job without the right resources at your disposal. Even with updated, new technology, you waste time and resources learning and using a system that is second nature to a company like BROWZ. We save you time, ensure that your contractors and suppliers are compliant and happy, and ensure that the job goes off without a hitch by mitigating technological risks.
As we covered above, outdated or insufficient technology is a large reason why supplier prequalification fails. For a list of other reasons, download the full ebook here, or skim the infographic below.
- supply chain management
- contractor pre qualification
- supply chain management
- safety statistics
- corporate social responsibility
- safety compliance
- contractor management
- compliance management
- risk management
- contractor safety
- risk mitigation
- Supplier Management
- 2017 Procurement Strategy - Award Winning BROWZ
- Foundations of an Incident Free Supplier Management System
- Vendor management challenges
- Behind the Scenes Work Required to Hire Reliable Suppliers
- Technology is Necessary to Prequalify Suppliers and Contractors
- Top 10 Reasons Why Supplier Qualification Fails [Infographic]
- Reasons Why Leading Organizations Outsource Contractor Prequalification and Management [Infographic]
- Planning for Emergencies
- Meningitis outbreak highlights supply chain management risks
- Regulatory cliff may mean new guidelines for companies