BAM’s vendors are vital to the success of our business. A large part of our turnover consists of procurement, so we want to build reliable and sustainable relationships with our vendors. Our success is closely linked to the success of our supply chain.
BAM cannot pursue our vision and objectives alone. We therefore work with our vendors to guarantee, stimulate and innovate our quality, safety, sustainability, industrialisation and digitalisation. Working together in tenders is the key to winning projects.
Every year, BAM spends significant amounts on the procurement of products and services to support our civil, construction and property projects. Depending on the product groups and or services, we aim to create benefits that transcend project, region or business segment.
The vendor pyramid
By categorising vendors according to the vendor pyramid, we determine in the regions in what way we build sustainable relationships with which (limited) group of vendors.
So that we consciously work together and proactively manage our dealings with our vendors.
- Key: Vendors that enhance BAM’s distinctive capacity and vice versa, with whom BAM wants to maintain a close collaboration and shares and pursues its vision and goals.
- Preferred: Vendors that BAM builds relationships with and works with regularly on projects. These vendors are project-transcending, have project-transcending capabilities and commitment.
- Selected: Vendors selected by BAM to outsource projects to.
- Registered: Vendors in BAM's systems meeting minimum requirements.
Managing vendors also means measuring their performance. Every year, we conduct hundreds of vendor evaluations and discuss this with our key and preferred vendors. This helps to continuously improve our relationship with vendors and engage the right vendor or subcontractor in our projects. Persistent above- or below-level presentation by a vendor, or whether or not it moves with our vision and objectives, can lead to a different place in the vendor pyramid
We need each other to move forward and vendor management helps.