Step by Step Vendor Process
Once our clients’ needs have been identified with regards to their Vendor take on process we customize our software to accommodate these needs. A workflow and Procedure is then put into place and Innoven will facilitate the vendor take on process from start to finish. We also maintain a Potential Vendor Database for our clients.
Outsourcing Vendor Management has become a trend in the Industry which allows our clients access to suppliers that have already been verified and have already gone through a screening process. This process also minimizes fronting and allows our clients to identify reliable and dependable BEE Suppliers.
Vendor Profiling – Preferential Procurement Surveys
We believe it is important for you as our client to know your suppliers and what their BEE Status is to ensure that your Procurement Targets are met.
Our process ensures that Procurement Spend is measureable and auditable, we compile a supplier file with confidential information. This information is also captured on our database to which our clients have a secure login.
Part of this process entails an annual verification and update of company details and their BEE Status.
Vendor / Supplier Administration System
Our Software programme addresses specific industry needs with regards to Vendor Management. Record is kept from when we receive the suppliers documentation to the point of Vendor Creation. We also facilitate the security screening process and keep record of this on our system. Our system enables us to give statistics to our clients on how long it takes to have a vendor created, the duration of the screening, etc
Vendor Verification
We provide an Integral role to our Corporate Clients with regards to verifying their Vendors.
This role primarily relates to the validation of documentation and company credentials. These verification services include the validation of the company’s registration with CIPC. A further validation is done with SARS on the company VAT Number as well as the registration of Workman’s Compensation.
Fronting is minimized through a validation of their BBBEE Certificate and black Ownership Status which is validated against their ownership documentation.
In addition to the above the checks can be done on individuals and companies:
- How many companies one Director appears on.
- If the Company or Individual is listed on the SAPS Fraud database.
- Deed Searches
- Judgments
- Academic Qualifications
- Death and Birth Certificates, etc.
Fronting Investigations
As part of our strategy to assist our suppliers in meeting compliance we now offer the service of Fronting Investigations.
Fronting means a deliberate circumvention or attempted circumvention of the B-BBEE Act and the Codes. In addition to this entities may misrepresent their ownership structure which has direct relevance to Mining Charter Compliance.
Fronting commonly involves reliance on data or claims of compliance based on misrepresentations of facts, whether made by the party claiming compliance or by any other person. Corporates may come across fronting indicators through their interactions with their suppliers.
In order to effectively deal with Fronting the responsibility lies with the Corporates to implement processes to determine fronting. Intentional misrepresentation by measured entities may constitute fraudulent practices
Technical and Quality Assessments
It has become imperative that Corporate’s demonstrate a due diligence process with regards to Technical and Quality Assessments. The purpose of such assessments is to ensure that your company Procures from reliable and capable suppliers.
An assessment demonstrates a commitment to quality, to customers and provides a certain level of trust in your suppliers.
It has become the norm to have this as an outsourced function due to the Corporates Resources and Costs to perform these themselves.
As part of a Corporates strategy to increase BEE Procurement and to develop sustainably SMME’s the Corporate should implement these type of assessments. It is necessary to perform this type of assessment on suppliers that are tendering for new business which will then mitigate the risk to you as the Corporate.
The technical assessment would ensure that the companies in question have the necessary skills and experience to carry out any work that they have stipulated on their vendor application and in their company profile. Also this will ensure that the stipulated capabilities are within the company or at a third party if declared in their application.
A quality assessment would be carried out to ensure that a manufacturing quality system is in place according to relevant ISO standards, or that the third party has quality systems if declared.
There are different types of assessments eg: Technical Assessments, Quality Assessments, Pre-Inspection, Company Assessments, Pre-production Inspections, Mid-production Inspections and Final Inspections.