Sarfaraz Bashir, officer — supply-chain & logistics, Jumeirah Group shared his expertise on why vendor evaluation and contracts are vital for reducing costs and improving quality and service.
1. Establish real vendors: “There are companies that are not vendors, they are not good companies, and they are not established brands. But if we talk about the vendor evaluation, this should be a proper criteria that you go through before you actually meet them so that you don’t waste time with fake companies.”
2. Come up with a sturdy criteria: “The vendor evaluation should be a process by which we select our suppliers by their operating standards. Not only standards, but qualifications, trade licensing partners, facilities, experience of the vendor on the market as well as their clients.”
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3. Get feedback: “A vendor evaluation is best when you get feedback from all the departments affected — the end users.”
4. Enforce contracts: “Contracts help with timing so things are available. You’re securing the costs, you’re securing the supplier who provides these items down the line, so it’s always helpful to have a contract.”
5. Review the vendor regularly: “At Jumeirah, we review our vendors again after six months so this helps us to make sure that our processes are sustainable and stable over an extended period.”
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