Effective monitoring and review of procurement activity under a panel supports compliance with external reporting requirements94, assessments on whether to exercise an option to extend or renew a panel arrangement, knowledge of supplier performance, and the identification of opportunities for improving the overall management and use of the panel. Key areas of monitoring and review relevant to panel arrangements include:
• review of user compliance with the operational requirements of the panel, for example, the scope, pricing and method of purchase;
• monitoring the performance of suppliers in delivering goods or services procured. Approaches adopted by entities include supplier self-assessment checklists (which are validated by the user), feedback forms on supplier performance against key performance indicators (which are completed by the user at the completion of each contract), or exception reporting on supplier underperformance to the panel manager;
• panel usage, for example, the number and value of individual contracts entered into under the panel arrangement or service category, and the contributions of different suppliers; and
• supplier and user views on entity administration of the panel, including options for improvement.
______________________________________________________________________
94 External reporting requirements are detailed in Appendix 1.1 of the Guide.