Supplier Categorization was developed in conjunction with international oil Companies (IOC) representatives, the Nigerian National Petroleum Corporation (NNPC) and the Nigerian Petroleum exchange (NipeX) to classify suppliers according to their financial strength and organizational capability.
There are four levels (A - D) for each product or service code and categories are determined by a series of categorization criteria. A new inexperienced company will start from category "D" and migrate upwards as they improve their competencies and acquire greater capabilities.Industry leaders will be in category "A".
The 4 Levels per product or service code are namely
Category A For industry leaders
Category B For major players
Category C For upcoming players
Categort D For new entrants
Two main Categorization parameters
A. Financial strength ( from audited accounts).
1. 3 - year average annual turnover
2. Company assets
B. Organization Capability
1. Capacity (ability and competency).
2. Company Longevity
3. Inventory / Equipment
a) Inventory (products)
b) Equipment (services)
4. Experience of key personnel
5. Offshore / Onshore experience as applicable
6. OEM / agency type ( for products only)