Why conduct supplier accreditation assessments? Executive Accreditation Specialists (Pty) Ltd November 2010

Index Purpose Process Value proposition

Purpose Optimization of supplier list (classification, grouping, etc.) Establish long term relationships with preferred suppliers (identify relationship management style for different classifications) Identify potential areas of risk associated in dealing with a specific supplier (short comings identified during assessment visit, aspects which are non- negotiable, etc.) Implement mitigations in order to minimize the identified risks (increase inspection interval, increase random sample, etc.)

Process Classification of supplier list (Shop, Leverage, Critical and Strategic grouping) Determine format of accreditation required (matrix total, past experience, etc.) Conduct accreditation (Pre-qualification Assessment, Verification Assessment, Diligent Assessment) Formulate report (executive summary with findings and recommendation, detail if required) Present recommendation to client (discuss details of report, provide documented proof of findings, etc.) Follow-up (based on assessment outcome and if required by client)

Value proposition Only accredited suppliers to be registered on supplier base (optimization of supplier list, reduce elements of risk, etc.) Reduce the element of risk in having to deal with suppliers not accredited (suppliers are approved for specific categories, improve controls and mechanisms, etc.) Not all suppliers need to be accredited on the same frequency (grouping of associated supply and/or services, even spread of resources, etc.) Encourage/enable the development of long term relationships with selected suppliers (opportunity to negotiate better terms and conditions, economies of scale, improve support, etc.)