Getting your Suppliers to Buy-In to the Prequalification Process

Feb 25, 2016

Your brand is what defines your business, and it should be protected at all costs. A negative experience with a brand can be hugely detrimental as customers determine that their trust should be placed elsewhere. Before you hire a supply chain or contractor to represent your brand or company on site, shouldn’t you be directly involved in the contractor assessment process to ensure that your organization is protected?

Prequalifying suppliers and contractors is an effective way to ensure that you have the best people working for you and to minimize the risk for your organization.

What Does Supplier Prequalification Mean?

When you hire suppliers or contractors to work for your organization, there is little distance between what they do and what the public thinks your company does. If they are working on your site and an incident occurs, backlash may be almost immediate as the incident reflects negatively on your brand. While you don’t have control over how your contractors and suppliers run their businesses, you do have control over which ones you choose to engage with on projects.

In order to streamline the process and reduce risks, a supply chain prequalification company like BROWZ will screen contractors and suppliers to ensure that they meet the standards of both your company and your industry. While your stakeholders, executives and employees should all buy-in to the importance of the process, the real work lies selling the importance of a process that minimizes inherent risks that are involved when working with third party contractors or suppliers.

The Importance of Supply Chain Buy-In

Everyone involved in the process must believe in the importance of prequalification and understand the value that it presents to both sides of the equation. Successful companies or organizations see the process as a type of partnership that benefits the organization and any contractors involved in a specific project. Suppliers and contractors seek not just to improve their own work, but also to improve the image of those who hire them. When the supply chain embraces the prequalification process, both organizations have a part in reducing risk and protecting the interest of both parties.

This strengthens the relationship between both entities and keeps safety standards high on any job site. While the hiring organization may seem to benefit most from supplier prequalification, the contractors involved in any job also benefit from the protection that comes from the process.

In order to ensure that both sides of the equation support the prequalification process, clear expectations and effective communication are vital parts are necessary to keep the program in place and ensure that everyone involved benefits from the time taken to implement the process.

There are many reasons why a supplier prequalification process may fail quickly, and lack of supply chain buy-in is at the top of the list. Both parties must truly understand the value and be invested in the process in order to not only protect the company – but to create a better, improved product at the end of the project.

Identifying Risks Before Problems Arise

Pre-qualifying contractors and suppliers allows companies to avoid risks that comes from battles with legal, regulatory, environmental, safety, health and financial obstacles. These risks can be destructive to a company and a brand overall. When both organizations and the suppliers they hire understand the importance of the prequalification process, these risks can be controlled for both parties.

Identifying and mitigating risks before they arise is the ultimate goal of prequalification. Protecting your brand with a trusted, understood supplier prequalification process ensures that your company shareholders, practices, and standards are all protected regardless of who you work with.

Qualifying contractors and suppliers protects both the contractors involved in a project and the hiring organization. When your business needs to mitigate risks in order to increase profits and ensure jobsite safety, a prequalification process from BROWZ can ensure that both parties are protected from unnecessary risk.

For a full list of other reasons why supply chain prequalifcation fails, download the eBook here.