Investigating suppliers reduces risk

MANY companies continue to complain about suppliers who do not deliver services according to the terms of the contract.

By Morris Opira

MANY companies continue to complain about suppliers who do not deliver services according to the terms of the contract. Some firms accuse suppliers of not delivering on time or in the right quantity, while other suppliers are faulted for supply of sub-standard products.

However, sector players say organisations are partly to blame, arguing that if they took precautions, like investigating all bidders for a particular service, some of these problems could be prevented and the rogue suppliers denied business.

Experts warn that companies should not fall for the good customer care and promises from impending suppliers of best delivery. So, how can a company get information that a bidder would never want them to know?

According to Geofrey Mutamba, the MSL Logistics marketing manager, visiting a supplier’s premises is important before giving out a tender. “This helps a company to know the operating location and the conditions under which the materials are made and packed. It will also enable a firm to get the right information about a prospective supplier, ensuring that genuine suppliers get jobs.”

He says it is also advisable for a company to research about the suppliers before they are evaluated for the tender, especially about a supplier’s competence to carry out the project. He says this can be done by inquiring from the existing customers.

This enables a company acquire firsthand information about bidders and, hence, prevent any future inconsistences.

A company can get exclusive information about an impending supplier from business partners, according to Jona Igaga, the regional sales manager at Good African Coffee. Business partners are a good source of such exclusive information, especially basing on their experience with different suppliers.

“This information can help a company identify effective and efficient suppliers and reduce the risk of awarding contracts to ‘paper bag’ suppliers.

A company can also source information that an impending supplier would rather it is never known by contacting regulatory bodies like the Uganda National Bureau of Standards.