SCC Supplier Performance Management (SPM) Training

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Presentation transcript:

SCC Supplier Performance Management (SPM) Training April 2017

What is Supplier Performance Management (SPM)? Module 1

What is Supplier Performance Management? 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.

What is Supplier Performance Management? 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 Benefits to 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 Benefits to Suppliers Visibility into issues Joint process improvement Opportunities for business incentives Relationship strategy Introduce new supplier products and services

SPM Project - Workspace SPM Concepts and Terms SPM Projects – Also called Workspaces Key Performance Indicators (KPI’s) Surveys – On Going Scorecards – On Going Reports – Show trends quarter over quarter SPM Project - Workspace KPI’s Surveys Scorecards Reports

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

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