Assessment and Development of Vendor Management System (VMS) of Company OPQ

Abstract

Vendor Management (or Supplier Management) is a critical activity in which buyers, purchasing staff, or procurement officers are in-charge to execute. It is done to keep the suppliers engaged with the needs of the business and for the suppliers to be aligned with its goals. Also, vendor management is purposed to maintain a good business relationship with the suppliers which is beneficial to both the business and suppliers. Company OPQ is a chemical manufacturing company in the Philippines that serves various market industries (food, biodiesel, homecare, personal care, crop science, building & construction, etc.) thus, given these large industries being supported and to continue supporting them, the company's supply base must be taken care of. Hence, Vendor Management System (VMS) is one of the programs that administer the supply concerns of the company by managing the suppliers and all concerns associated with them. Currently, the VMS of Company OPQ is comprised of 2 programs: Supplier Audit and Supplier Assessment. The study intends to assess these programs, identify areas of improvement, and create proposed revisions using a method inspired by the Systematic Literature Review (SLR). This is done by extracting data from the company's VMS records and procedures and interviews with the internal and external stakeholders who are directly involved in the VMS programs. The proposed revisions for the VMS programs are believed to fortify the audit coverage questions and more comprehensively assess the supplier's performance. Through this, the maximum potential of the supplier might be unlocked.