Policy, Program and Procedures

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  • 1.  Vendor Class Governance Performance Class Structure

    Posted 02-26-2024 09:48 AM

    Hello everyone, 

    We are wanting to dig into to Performance Management and I would appreciate any recommendations on sources that discuss governance.

    We are thinking to build logic that helps distinguish how each vendor class is treated (e.g. transactional vs. strategic) are tracked differently from if they have business reviews/KPI's tracked or not needed etc.

    Thank you in advance for all of your help and support,


  • 2.  RE: Vendor Class Governance Performance Class Structure

    Posted 02-28-2024 09:05 AM

    Hi Bruno,

    That's an intriguing question. In my line of work, I collaborate with numerous companies across various industries, and most of them rely on two parameters to assess their suppliers: annual expenditure and the nature of the goods or services being sought (whether they are critical to their operations or not ).

    For instance, if a company is looking for critical services with a substantial budget, it may classify the supplier as strategic, necessitating extensive analysis such as financial assessments, reputational checks, etc. In the other hand, if the purchase involves a simple commodity at a low cost, the requirements may be minimal, possibly limited to documents confirming the existence of the company. Many companies in Brazil operate on similar principles, and given the country's challenges, it's imperative to exercise caution. We often use the Kraljic Matrix to streamline our processes in this regard.