SRM and Supplier Recognition - IV

A prerequisite for having a successful supplier recognition program is to have clearly defined roles. The key players are the Procurement Council, Selection Committee, Nominators, and Executives.

The Procurement Council establishes expectations and policy, appoints members of a Selection Committee, approves a budget, approves the selection criteria and process, reviews and approves the selected suppliers, and runs the logistics of the recognition event itself.

The Selection Committee communicates the nomination process to all parts of the organization, establishes clear decision-making criteria, reviews nominations, and selects the “best of the best” finalists for review by the Procurement Council.

The “nominators” are procurement personnel and internal clients who identify appropriate nominees based on the communicated criteria, prepare the nomination submission with supporting data, and ultimately participate in communicating the decision to affected suppliers.

Playing a critical role are the senior executives of your company. The CEO should be invited to officially “host” the events, including a business meeting with the supplier execs, as well as hosting the recognition ceremony itself. Business unit presidents should be encouraged to attend, since they are the beneficiaries of the suppliers’ excellent performance.

Are you ready for supplier recognition at your company? We’ll cover that topic in the next posting.