Supplier Selection

When applicable, Prudential uses a formal sourcing process to ensure prospective suppliers meet the company's criteria and standards. This process consists of research, participation (Request for Information/Proposal) and supplier selection.

Prudential addresses questions such as: How is the commodity used? Has any benchmarking of costs, quality, service, technology, etc., been completed? Is the commodity used throughout Prudential or is it unique to one/several groups?

As part of this research, we create a cross-functional team comprised of subject matter experts who represent user organizations affected by the goods and/or services to be procured, as well as personnel whose knowledge and experience adds value and supports the process.

Prospective suppliers are invited to respond to a Request for Information/Proposal (RFI/RFP). They are required to submit some or all of the following information:

• Organizational overview, including number of employees, operational locations, ownership structure, key personnel experience
• Description of goods and/or services provided
• Audited financial information
• Customer references
• Past, pending, and current lawsuits and legal actions
• Service practices and hours of operation
• Quality programs and approach to continuous improvement
• Plant/facility inspections

The Request for Information/Proposal (RFI/RFP) includes:

• Prudential's product/service requirements/specifications
• Business requirements, such as pricing and delivery information
• Contractual terms and conditions

Prudential reviews each supplier's proposal and evaluates their ability to meet our need for the product and service.

It is Prudential's policy to encourage negotiations with competitive vendors to obtain the best value proposition, the combination of total cost, quality and service. We conduct vendor negotiations in a manner that is fair, ethical, competitive and based on sound procurement practices.

In certain situations, technological facilitators such as reverse auctions may be employed to accelerate the process.

Once Prudential reaches a final decision, participating suppliers are notified.

 

 

Procurement Core Values