Management of suppliers’ performance in BWDB : an evaluation
AuthorHasan, Md. Rakibul
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Bangladesh Water Development Board (BWDB) mainly implements river bank protection, flood control, drainage and irrigation projects. BWDB has completed many water management related projects and it has around 54 ongoing ADP included projects in this year 2014-15 where there are many suppliers/contractors performing in those projects. Supplier performance management will play a vital role to complete those projects successfully within time frame and budget allocation. This dissertation focuses on the supplier performance management in BWDB. The objective of this dissertation is to identify the current practices of supplier performance management and performance shortfalls as well as to suggest ways of improvement in supplier performance. This is an exploratory research that uses case study method. Primary data (qualitative) has been collected from respondents both engineers and suppliers of BWDB working in selected projects through questionnaire survey and interviews. Secondary data (quantitative) has been collected from BWDB website. From the analysis of the both qualitative and quantitative data the major reasons behind the shortfalls in supplier’s performance have been identified and suggestions about improving supplier performance have been congregated. It has been found that only 13% projects are completed in due time and 67% projects need two to three years extension to be accomplished. This is happening due to mainly insufficient budget allocation in the projects by the government. Two to three years delay occurs in 66% projects to get budget allocated in the original DPP. Due to financial insolvency of suppliers they can’t start project in due time or even can’t accomplish project within given time period. Again suppliers have technical shortfalls like lack of machinery, equipment and manpower. Sometimes it is found that there are no weight measuring scale, sieve, sufficient sewing machine, generator, cc block formwork and labor. Although suppliers show graduate engineers in their manpower list while contracting but practically even no diploma engineers are found in the work site. Moreover, due to lack of supervision by concerned official, contractors often take the chance to deteriorate quality of work. They change the concrete mixture ratio in cc block manufacturing and change thickness of filter material above which cc blocks are laid down in the slope of the river bank. To improve suppliers’ performance sufficient yearly budget allocation as well as quarterly fund release according to original DPP should be done by BWDB. If it is impossible to allocate sufficient yearly budget, suppliers should be allowed to take loan from state owned bank against their work/supply order at low interest rate in compared with private bank. Moreover, the existence of equipment, machinery and manpower according to suppliers’ submitted list should be specially checked and verified through visiting suppliers’ premises to ensure the technical capability of suppliers while selecting them. Finally, the concerned engineer may motivate supplier through the both approach of motivation i.e. the carrot approach (e.g giving recognition and rewards: inclusion on the preferred supplier list, certificate of excellence which will increase the goodwill of the supplier in the market) and the stick approach (e.g publicizing debarred/black list for unsuccessful supplier, giving exemplary punishment, including penalty clauses in contract).