SCC S UPPLIER P ERFORMANCE M ANAGEMENT SPM

SCC S UPPLIER P ERFORMANCE M ANAGEMENT( SPM) T RAINING April 2017

W HAT IS S UPPLIER P ERFORMANCE M ANAGEMENT (SPM)? Module 1 2

W HAT IS S UPPLIER P ERFORMANCE M ANAGEMENT? Supplier Performance Management (SPM) is the process of measuring, analyzing, and managing supplier performance, processes, and practices to improve quality, reduce costs, mitigate supply risk and drive continuous improvement in the supply base.

W HAT IS S UPPLIER P ERFORMANCE M ANAGEMENT? Develop Supplier Communications • • Goals and Objectives Presentations Create Scorecard • • • Quantitative (transactional/report) Measures Qualitative (survey) Measures Set Targets & Weights Gather Performance Data via Survey or Transactional Grades • • • Quantitative (transactional) Qualitative (create survey) Manage workflow Publish & Analyze Results Repeat as defined by supplier segmentation tier classification

SPM B ENEFITSTO SCC • Drive continuous improvement of supplier performance with our suppliers • Improve processes through collaboration • Use performance measurements in decision-making • Cost reduction opportunities • Optimize our supplier portfolio to become more efficient in purchasing and strategic sourcing • Establish and maintain sustainable supplier relationships • Drive down supplier performance risk • Increase profits

SPM B ENEFITSTO S UPPLIERS • Visibility into issues • Joint process improvement • Opportunities for business incentives • Relationship strategy • Introduce new supplier products and services

SPM C ONCEPTSAND T ERMS SPM Projects – Also called Workspaces • • Surveys Key Performance Indicators (KPI’s) Surveys – On Going Scorecards – On Going Reports – Show trends quarter over quarter KPI’s SPM Project - Workspace Scorecards Reports

SPM C ONCEPTSAND T ERMS Features Benefit SPM Project Supplier & Team collaboration, e. g. on KPIs and scores SPM Project Centralized repository for supplier information SPM Project Manage process for suppliers across categories Scorecards & Surveys Streamline & automate process for measuring & scoring supplier performance Scorecards & Surveys Increase suppliers & categories under management Scorecards & Surveys Best practice KPIs, surveys & scorecards Analysis SPM Central place to analyze performance over time Analysis SPM Streamlined visibility to supplier summary & details Analysis SPM View supplier performance, process & spend data

SPM C ONCEPTSAND T ERMS Internal Supplier Performance Components Surveys Scorecard Analysis External Ariba Transactional Data 3 rd party systems Collaborative Performance Projects Plan Monitor Review Task Management Knowledge Management Workflow Document Management Team Collaboration 360 Supplier View