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what are the criteria that makes you enlist a supplier or subcontractor as black listed, would it be worthy to generate such a list.
Thanks for the invite, I agree with the rest of the answers
Suppliers could be Blacklisted when they don't have the Capability or the Capacity your company is looking for, as per Nadeem Asghar's answer.
A more positive way of looking at this instead of a Blacklist may be putting together a list of approved suppliers who have confirmed their business meets a number of criteria including:
- cash flow and other account information showing they are a stable business
- they have always paid taxes they should
- they have never been prosecuted for fraud or bankruptcy
- they have good experience in the relevant industry with good references
- they hold any relevant industy accreditations (eg. ISO standards)
- they have never been prosecuted for poor environmental or labour practices
Hope that helps
when the Supplier disrespects the supply schedules .
when the supplied materials are not conformity as agreed .
when supplier all the time claims financial invoices prematurely .
when supplier breaks of basic terms in the contracts .
,,,,,
thanks fr invitation
Hello Amin,
SCM departments have always some performance criterion for suppliers. (See the requirements for ISO 9001 or TS 16949)
Some performance criterionsa are:
1-) ppm target: defact ratio for 1 million. Most of automotive OEMs ask for their suppliers between 30-600 ppm. It changes on the sector of supplier. For example electronic component suppliers 30 ppm but , casting metal suppliers (non-machined) 600 ppm. If any company exceeds ppm targets it must develop itself for next period. If the problems go on it is in black-list.
2-) Delivery Performance: (On time, avarage day of delays, more than required, less than required) The supplier must reach at least %99 delivery performance on time, no more than required, no less than required quantity. If it has less than %99 it is a big problem for automotive sector.
3-) Certification: ISO 9001, TS 16949, OHSAS, ISO 14001 are must! No tolerance!
4-) Price flexibility: Each company has its own cost/price management criterions for suppliers. Yearly improvement of cost or discount promised.
Sure there are some other factors for falling to blacklist for a supplier but those above are common rules.
Regards
poor performance and lack of professionalism
When a supplier is found involved in unethical business practices, he shall be blacklisted at the earliest.
For all the other defaults one shall wait until all possible guidance and help has been provided to the supplier and he proves himself unworthy of your attention.
at Close Procurement process.
The supplier of subcontractor should be black listed at the following conditions
Did not meet the technical requirements for the scope of his contract deliverables, internationally
Did not meet the time baseline agreed at his contract, without any reasonable explanation to the Clint
Violet the contract terms or conditions and ignores the Clint notifications
One of the first places to look is the US Table of Denial Orders. In addition the Embassies or Higher Offices diplomatic restrictions list would be useful. You can get them on-line. Only do it through official sources. You must be certain that the information that you get is genuine.