Vendor Performance Evaluation and Development

Objective

The Vendor Performance Evaluation and Development Program aims to recognize, reward and develop Meralco's accredited vendors so that they consistently meet or exceed expectations and requirements.

Scope

The Vendor Performance Evaluation and Development Program will cover and apply to all accredited vendors of Meralco. The process will be limited to the evaluation and monitoring of accredited vendors, including the technical and commercial aspects of the offered commodities.

Performance Monitoring and Evaluation

All vendors of Meralco, regardless of their status level, will undergo performance monitoring and evaluation. The vendor's performance is monitored and evaluated based on:

a) quality of material or work;

b) quality of product/service and conformance to delivery/work schedules;

c) quoted prices;

d) responsiveness to bidding

e) customer service

Vendor Classification

All accredited vendors of Meralco will be classified according to the following status levels:

  1. Accredited Vendors, Preferred Vendors and Partners.
  2. Accredited Vendors are those who passed Meralco's minimum requirements in the performance evaluation process. This is also the default status level for newly accredited vendors.
  3. Preferred Vendors are those who offer additional services, support or assistance to Meralco. As compared with Accredited Vendors, Preferred Vendors may get a higher share of the requirements and preference during order placement.
  4. Partners is the highest vendor status level. It is a long-term relationship where the vendor is treated like a business partner. To become a partner, a vendor should be able to provide additional services and technical or financial support. In return, they get a bigger share of Meralco's long-term requirements and other privileges which is far superior to that of the preferred status.

Performance Measures for Suppliers

To give a general idea on how Meralco will assess vendor performance, listed below are some of the criteria that will determine the performance of Direct Suppliers, Traders and Manufacturers.

  1. Quality of material
  2. Track record
  3. Technical ability
  4. Tools and equipment
  5. Conformance to standards
  6. Safety practices
  7. Achievements
  8. Product development
  9. Applicability of product
  10. Deliveries/shipments
  11. Warranty
  12. Relationship with Meralco
  13. Warehousing
  14. Reliability
  15. Efficiency
  16. Dependability
  17. Frequency of rejects
  18. Failure rate
  19. Offered price
  20. Responsiveness to bidding

Performance Measures for Contractors

  1. Job skill
  2. Technical expertise
  3. Job accuracy
  4. Safety practices
  5. Tools, equipment, and vehicles
  6. Conformance to Meralco standards
  7. Qualification/training of personnel
  8. Achievements
  9. Compliance with target dates
  10. Financial strength
  11. Warehousing
  12. Service improvement/development
  13. Relationship with Meralco
  14. Reliability
  15. Efficiency
  16. Dependability
  17. Track record
  18. Labor relations
  19. Compliance with laws and ordinances
  20. Failure rate
  21. Offered price
  22. Responsiveness to bidding