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Any three situations in which suppliers black listing may be considered appropriate penalty.

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Question added by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner
Date Posted: 2016/05/12
Sathish Prabhu.V
by Sathish Prabhu.V , Manager - Operations & Process Improvement , Revolution Valves

1) Supplier Quality ratings consistently below in the red zone

2) Delivery performance consistently rated poor

3) Quantity discrepancy or any non-conformance ( related to major discrepancy) during supplier audit 

The above three should qualify for blacklisting the supplier

Fauzil Musthafa Kamal
by Fauzil Musthafa Kamal , Manager, Imports , Sri Lanka Umbrella Industries / Rainco

Three Situations  :

1. On-time failure : Failure to supply on time, affecting the business - In case of manufacturer,

     the production stoppage and in case of trading, the product supply to market fails - In both

     cases, the business suffers

2. Low-Quality materials - Not in compliance with sample :

    Supply of defective or low-quality materials / products - deviating from the original sample which

     was approved, means when they fail to supply the quality product as per sample submitted

3. Breach of Trust - When the breach of trust take place, be it terms & conditions, supply of

     materials or any other form of transaction - black-listing recommendable

 

 

 

 

NIRAV SHAH
by NIRAV SHAH , MANAGER PROCUREMENT (DIRECT MATERIALS) , L&T SPECIAL STEELS AND HEAVY FORGINGS

I would beg to differ from other experts of the group. Since these days SCM champs talk about Vendor Development and mentoring rather than black listing... For all the issues be it quality, cost or delivery we can sort it out with vendor. As in todays cut throat competition scenario, no Vendor would afford to loose business. It all depends how we take up the matter with vendor

Elke Woofter
by Elke Woofter , Project Assistant , American Technical Associates

vendor lies about quality of product ;

constantly delivers late;  

pricing is not a match with their website

always having problems with billing issues

Deleted user
by Deleted user

Nirav Shah, I couldn't agree more with you that vendor development and mentoring I's key for procurement professionals. Indeed tables could turn on the purchaser here because if a supplier fails to deliver on time, quality or whatever other obligation they have to the buyer, it must be admitted that either contract manager of that supplier isn't doing a good job, adequate due diligence prior to placing the order wasn't done or generally the buyer is just not interested in developing and growing together with their suppliers!

Ahmed Mohamed Ayesh Sarkhi
by Ahmed Mohamed Ayesh Sarkhi , Shared Services Supervisor , Saudi Musheera Co. Ltd.

Agree with mr. Fauzil Musthafa Kamal 

Saiyid Maududi-Oracle Applications Consultant
by Saiyid Maududi-Oracle Applications Consultant , Entrerprise Architect , US Technomatrix, Inc

Hello Team,

PROHIBITION ON BLACKLISTED PERSONS/ENTITIES TO PARTICIPATE IN THE BIDDING OF GOVERNMENT PROJECTS/CONTRACTS A person/entity that is blacklisted by a procuring entity and/or included in the Government Procurement Policy Board (“GPPB”) Consolidated Blacklisting Report shall not be allowed to participate in the bidding of all government projects during the period of disqualification unless it is delisted as provided for in these guidelines.

Appellate Authority. The department, office or government unit exercising general and/or administrative supervision/control over the blacklisting agency. Department level agencies shall exercise appellate authority over offices, agencies, bureaus, government units, GOCCs and SUCs under their jurisdiction. Provided, further, that blacklisting decisions of government agencies that are not subject to general and/or administrative supervision/control of any department, office or government unit shall be final and executory.

SANCTIONS AND GROUNDS FOR BLACKLISTING

Competitive Bidding Stage During the competitive bidding stage, pursuant to Section 69 of R.A. 9184, the procuring entity shall impose on bidders or prospective bidders the penalty of suspension for one (1) year for the first offense, suspension for two (2) years for the second offense from participating in the public bidding process, without prejudice to the imposition of additional administrative sanctions as the internal rules of the agency may provide and/or further criminal prosecution, as provided by applicable laws,

Regards,

Saiyid

Santhamurthy Kesavan
by Santhamurthy Kesavan , Consultant , Self Employed

Blacklisting is a Contemporary Issue

The Committee have asked “Is blacklisting still taking place, both within the construction industry and more widely, and especially in Scotland?”

 As the Committee is fully aware, blacklisting by its very nature is underground, covert and secretive and is notoriously difficult for individual workers or their Trade Unions to prove.

 Despite this burden of proof, as a direct result of the recent experience of our members in the UK construction industry, and specifically those engaged on the Crossrail project by the contractor consortia Bam, Ferrovial & Kier (BFK), Unite are convinced that blacklisting is very much a contemporary issue.

 Whilst Unite acknowledge the fact that the Crossrail project is essentially a concern for London and the surrounding area, and doesn’t strictly fall within the remit of the Scottish Affairs Committee, the fact remains that a number of the major contractors on the project are currently working on or are shortlisted for publicly funded construction projects in Scotland.

 

I apologize for the answer I leave the answer to the experts, specialists in this field that's not my area.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Agree with  All  experts answer <<<<<<<<<<<<<<<<<<<<

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