Suppliers anger over new Kier vendor scheme

Grant Prior 13 years ago
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Firms working with Kier are fuming over a new supplier registration scheme which could cost them more than £200 a  year to use.

The Enquirer understands that hundreds of materials and product companies in the Kier supply chain were sent details of the firm’s new Vendor Management Programme last week.

The letter states: “As a valued supplier we would like to invite your company to join and continue our working relationship.”

Firms have until February 14th to sign-up to the new system by completing an online questionnaire.

The letter states: “After this Kier will start to identify organisations that no longer wish to work with us and may find alternative providers.”

Some suppliers are unhappy about the new system.

Initial registration is free. But those chosen as “prospective key suppliers” must pay an initial £210 then £170 a year for the “validation of their documentation.”

One supplier said: “This is another charge we could do without.

“We already have these prequal systems coming out of our ears. This seems more like a nice little money spinner for Kier.”

Another added: “It seems to have passed Kier by that construction is picking-up and it’s more about attracting suppliers now rather than rubbing them up the wrong way.”

Kier vigorously defended its new system.

A company statement said: “In order for Kier to meet its compliance responsibilities, mitigate risks within the supply chain, and ensure it has consistency across the enlarged Kier Group, we will now require our large and active supply chain to work to mandatory standards and accreditations.

“To manage this process for suppliers and manufacturers, we have launched the Kier Vendor Management Programme (KVMP), a new data verification system which will be managed by Exor, a third party specialist in supplier management.

“Suppliers who join the KVMP will benefit from improved access to Kier’s supply chain; they will now only need to complete a single questionnaire which, if approved, will make them eligible to work with every company in the Kier Group.

“There is no cost involved in the registration and questionnaire completion process.

“Only those key suppliers expected to receive high volume turnover will be asked to pay for their information to be validated, and this will be a relatively small cost compared to the value of orders that they can expect from Kier.

“The majority of our suppliers will not incur the validation charge.

“Subcontractors, labour agencies and consultants will continue to be validated through SSIP, Constructionline and Achilles.”

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