CONTRACT PURCHASING CASE STUDY

Contractor Pre-qualification and Maintenance

A Fortune 500 company contracted Purchasing Services Co. (PSC) to collect, monitor, and report on their Suppliers' Insurance Certificates and Safety/OSHA performance. This encompassed a large portion of the Client's supplier risk management function.

The Client requires their contractors to purchase and maintain differing amounts of Liability Insurance depending on the risks involved. PSC set up software to monitor the project, contacted the contractors, received the needed information, verified coverage amounts, negotiated with the suppliers to resolve inadequate coverage, and monitored the expiration dates of the Insurance. All of this information was readily available to the Client's personnel at any time.

PSC used a Client-provided standard Safety questionnaire for the collection of Safety and OSHA performance. This information was gathered electronically or via fax. PSC then built a custom database to collect and manage all pertinent information. This included the comparison of the contractor's safety numbers with the Client's own standards. The collection and review of the Safety performance is done on an annual basis and reported to the client. PSC's management of this project allowed easy upper-level decisions on the use and monitoring of their on-site suppliers.

In cases where the supplier did not meet the minimum standards required by our client, PSC developed additional reporting and tracking to improve contractor safety performance.

By utilizing PSC's expertise and electronic information gathering abilities for this assignment, the Client was then able to concentrate its manpower in more efficient ways, leaving Client personnel free to concentrate on more pressing matters.