Supplier Qualification System

Supplier Qualification System

Here is the description of Supplier Qualification System of MOL, adopted in SLOVNAFT.

Supplier Evaluation and Qualification

The supplier evaluation and qualification help us to identify capacity of suppliers, their responsibility to fulfill contract requirements and ability to meet with specifications defined in system of quality controlling and in the principles of supplier’s policy.

Motto: "The quality of output is determined by the quality of inputs."

Our fundamental principle is the following: Only those suppliers will be contracted that have been successfully qualified for the activity that is the subject of the contract.

Through application of our consistent supplier selection system, we ensure the products and services necessary for operations provided by suppliers, will satisfy the following criteria:

  • High quality,
  • Cost efficiency,
  • Precise delivery
  • Strive for long-term partnership.
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The Supplier Qualification System

The supplier qualification process is made up of the following elements:

  • Pre-Qualification
  • Continuous evaluation
  • On site audit at supplier
  • Black list
  • Processing of results, analysis and feed-back
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Pre-qualification

Preliminary audit of a new supplier conducted through our Pre-qualification questionnaire. According to the answers from the prequalification questionnaire, the supplier can be satisfied and registered into our database or unsatisfied and put into our Black list.

If additional information is needed during the pre-qualification process, further examinations may be required, including:

  • On site audit at supplier,
  • Delivery of first sample,
  • Pilot presentation.
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Continuous evaluation

The performance of contracted supplier is evaluated contract by contract.
The supplier’s activities are evaluated according to various criteria (price, quality, ability to supply, customer satisfaction) with various weights for certain product groups. The supplier’s performance is evaluated on the basis of the following main and secondary criteria:

PRICE

  • price standard, price behavior, price content, invoicing.
  • requirement for excellent qualification: allowances, discounts.

QUALITY

  • quality assurance. 
  • compliance with health, safety and environment protection criteria.
  • compliance with rules and standards in connection with the supplied material / product / service
  • requirement for excellent qualification: operation of a certified quality management system.

SUPPLY / SERVICE ABILITY

  • observation of deadlines
  • quantity match / deviation
  • packaging requirements (identification, damage, etc.)

CUSTOMER SATISFACTION

  • experience in pro-active co-operation
  • flexibility, reaction
  • requirement for excellent qualification: proposals for new solutions that are favourable for MOL.
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Processing, analysis and feedback of results

Qualification categories are awarded on the basis of the quarterly average of the results of contract evaluations:

"A" category, excellent supplier performance, that exceeds expectations.
"B" category, a good standard of supplier performance that satisfies expectations.
"C" category, the performance of supplier in this category is satisfactory but only once.
"D" category, supplier in this category will be put on a Black list for inadequate performance.
(Enquiries, request for bid cannot be sent to these suppliers.)
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Black list

Following the criteria below, supplier may be put on our Black list. It is not allowed to be in contract with the supplier.

  • the average of the results of quarterly evaluations is below 50% of the maximum number of points that can be achieved (D category),
  • if it is found that the supplier does not have the legal or technical conditions required for the given activity,
  • as a result of further examinations,
  • if the supplier is given to the category "C" for a given activity for three subsequent qualifications,
  • if there is evidence about the supplier that significantly reduces the reliability of performance (e.g. liquidation, lawsuit, criminal act etc.),
  • if in the course of performance, the supplier commits a serious breach of the rules in connection with environment protection, safety, security, health or other official regulations,
  • if the operations seriously harm the Company’s interests, if it is disparaging the Company and/or commits a serious breach of the contract.

Evaluated suppliers are notified about their qualification categories quarterly.

Results expected from the qualification system:

  • Increased customer satisfaction,
  • Improved quality of service,
  • Precise and up-to-date supplier records,
  • "Well"-known partners,
  • Supplier safety and mutually good partner relations.

We hereby wish all its existing and future suppliers satisfaction in their work and success in their co-operation.

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