Supplier Performance Reviews Help Deliver that Promise
Find out why customer-supplier relationships go wrong after contract award, and what progressive organisations are doing to address the issue.
It is often suggested that the exciting phase of procurement projects is the bid evaluation, culminating with the award of contract.
The evaluation is typically characterised as a short frenetic period of high activity, in a process very close to the money.
Relevant experts are brought in to assess bids, carefully probing them for weaknesses, inconsistencies and non-compliance.
The evaluation team’s goal is to award a contract to the supplier who demonstrates that they have the best understanding of the risks that would impact the delivery of the project.
“Project managers are kept awake at night worrying that the right decision is going to be made and worry they should; most strategic procurements commit significant spend over many years.
At some point in time, the contract is awarded, and the evaluation team go back to their day jobs.
An output of a robust evaluation process will be a full audit of the team members’ assessments, their scores, and the rationales that led to the award decision.
The question should now be: will the same level of scrutiny and probity be applied in the delivery phase?
In essence, all that has been procured to this point is an expectation and the promise to deliver the required capability, not the capability itself.
Surely then, the delivery phase does merit robust and continuous scrutiny to ensure that the customer is going to get what they are paying for…”
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Contract award, customer satisfaction, key metrics, measurement strategies, reviews