Supplier evaluation: Ensuring quality in road maintenance in KSA

12/11/2024

    Given Applus+’s expertise in supplier evaluation and quality assurance and quality control services, we were engaged as Quality Management Consultants (QMC) to monitor and assess the contractor’s services in detail using pre-established indices.

    Our client’s objective is to optimise service levels and efficiency of roads in Saudi Arabia, and to achieve this, they have implemented 62 performance-based contracts (PBCs), which assess the quality and effectiveness of the works carried out against expected levels.

    The project is expected to last three years, starting in January 2023.

    Our responsibilities in this vendor evaluation project focus on quality assurance of suppliers to ensure the successful implementation of PBC (Performance-Based Contracts) by monitoring supplier performance, the quality of delivered services, and assurance. These contracts are designed to incentivize providers to meet specific performance metrics, ensuring that services are delivered effectively and efficiently and promoting a higher level of provider service quality. With this goal of quality supplier management, Applus+ carries out a comprehensive evaluation process, which includes, in detail, the following tasks:

    • Development of contractor templates
    • Provision of advice to contractors
    • Review and assessment of submitted plans
    • Communication of any non-conformance reports (NCR)
    • Electronic distribution of communications
    • Proposal for unified scheduling software to enhance contractor efficiency
    • Revision of electronically submitted lists
    • Expert review of contractor CVs
    • Assignment of interview teams with flexible scheduling for contractor candidates
    • Electronic communication with contractors
    • Establishment of system criteria
    • Provision of system-related advice to contractors
    • Review of contractor-proposed systems
    • Submission of monthly reports and dashboard updates
    • Preparation of PBC Balanced Scorecards
    • Supervision of performance based on PBC
    • Periodic reviews and audits by the General Department of Maintenance
    • Periodic reviews and audits by our customer Quality Department
    • Submission of improvement proposals
    • Statistical analysis of performance results with accompanying recommendations
    • Knowledge transfer to the client and contractors

     

    Some of the challenges that the project has presented include change management, which involves training and guidance on PBC contracts for ministry and contractor employees, as well as the agile hiring of 350 highly specialized technicians.

    The results in supplier quality assurance achieved to date can be assessed through various parameters that measure the performance of the contractor and the impact of service quality:

    • Measured increase in contractor performance.
    • Implementation of a large, coordinated, and cohesive multicultural team to respond to our customer needs.
    • Development of a custom application to store, manage, analyze, and report contract work (both desktop and mobile applications).
    • Improvement of incident and accident response procedures.
    • Increased technical knowledge for executing tasks related to the PBC contract.
    • Use of new technologies to fulfill contract obligations.
    • Enhanced communication between the contractor and our client, making it faster and more efficient.
    • Quality control through audits of staff, facilities, and completed works to ensure compliance with the appropriate requirements.
    • Provision of root cause analysis related to various issues for the client.
    • Provision of technical advice to our client

     

    Thanks to our experience with similar projects in several countries, including Saudi Arabia—where the Applus+ brand is highly recognized—and our expertise in vendor surveillance and road management, we are confident that we are the ideal partner for our client to achieve the highest standards for the country's road network.

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