The Danger of Not Understanding Internal Stakeholder Needs
Feb 16, 2016
Regardless of the size of your business, mitigating and controlling risk is an essential part of staying successful. Whether you run a small mom and pop restaurant or a Fortune 500 company, there are inherent risks in owning and running a business. One of these risks is working with suppliers and contractors. Fortunately, supply chain qualification helps to minimize some of those risks, but can’t be done correctly if internal and external stakeholder needs are not understood correctly.
Stakeholders should always be included in the process of contractor management, and their wants and needs addressed accordingly. The supply chain qualification program is likely to interact with every organization on several levels, including:
In order to expedite the process, you must understand the difference between the wants and needs of a stakeholder. This is a crucial part of an equitable and fair program for any supply chain.
Balancing Supplier Prequalification With Stakeholders Needs
Your ultimate goal is to find suppliers that are safe, reliable and socially responsible. These are the suppliers that meet your standards and comply with any relevant legislation. Working with prequalified suppliers reduce your company’s risks, and aids you in finding the balance between community stakeholders, your brand reputation, and your partners – all without placing irrational needs on the shoulders of your contractors and suppliers.
The process is started by identifying which needs are absolutely critical – those that left unchecked, will put the company at serious risk. Once these needs have been defined, then the stakeholder wants can be implemented into the program. Needs help to minimize risks, while wants help to elevate the supply chain’s overall performance.
Any need or want that is implemented into the supply chain qualification process will not be taken seriously if the program does not add value to the process. Internal stakeholders will not support a program that doesn’t add value. When employees and stakeholders are trained on the process, they are more likely to support it, and continue to support it even as improvement and growth occurs and stabilizes.
Why Is Supply Chain Prequalification Necessary?
Your company simply can’t run on its own, and you rely on contractors and suppliers to help you finish your projects on time, build value in your company and meet the needs of your customers. Before you start working with other companies, you want to know that your risks are minimized when you bring them into your organization. With supply chain prequalification, risks in the following areas can be avoided:
- Health and Safety
When you understand the wants and needs of both external and internal stakeholders, developing an effective program makes it easier to mitigate risks involved with working external companies and third parties. Your supply chain partners must understand your industry standards and meet the appropriate compliance guidelines, before you hire them to work for your company.
Protecting Your Brand
In today’s world, your brand is everything, and the companies you associate with are a direct reflection on your brand. Customers lose trust in your organization when you place your faith in the wrong places. With a supplier prequalification program, you have the research and data to back up your intuition that tells you a supplier is going to be a great match for your company.
When there is any type of incident on your site, it reflects badly on your business. You must always know what your supplies and contractors are doing on your sites and how much risk is involved in their work in order to control incidents that may project a negative light on your company for decades to come.
All stakeholders must buy into the program if supplier prequalification is to work. While separating the wants and needs are important during the process, ignoring those wants and needs almost guarantees that the program won’t work.
Streamline the Administrative Process to Lower Your Risks With Supplier Prequalification
As a supplier prequalification company, we are able to streamline the process and access a vast list of suppliers to ensure that the needs of every company is met. In the world of do more with less, it is crucial to have a partner that will help you to address stakeholder needs, expedite the process, and take on the administrative burden of contractor management. Streamlining the process translates into quicker results and minimizes common frustrations along the way. All this will result in mitigating risks that can negatively your brand and potentially harm your business.
Poor understanding of stakeholder needs is one of the top ten reason that supplier prequalification isn’t embraced at every level of the project. This highlights the importance of streamlining the administrative process with supplier prequalification from BROWZ.
For a full list of other reasons why supply chain prequalifcation fails, download the eBook here.