CSIRO: Positive impact Supplier Relationship Management-Procurement is Not All About Price Peter Silveira | Procurement Category Manager March 2013 Property, procurement and environmental sustainability

Who we are People 6500 Divisions 12 Locations 58 Flagships 11 Budget Darwin People 6500 Cairns Atherton Townsville 2 sites Divisions 12 Alice Springs Rockhampton Locations 58 Bribie Island Murchison Toowoomba Brisbane 6 sites Gatton Myall Vale Geraldton 2 sites Armidale 2 sites Flagships 11 Narrabri Mopra Parkes Newcastle Perth 3 sites Adelaide 2 sites Irymple Griffith Sydney 5 sites Budget $1B+ Canberra 7 sites Wodonga Werribee 2 sites Belmont Geelong Melbourne 5 sites Top 1% of global research institutions in 14 of 22 research fields Top 0.1% in 4 research fields Hobart Sandy Bay 62% of our people hold university degrees 2000 doctorates 500 masters With our university partners, we develop 650 postgraduate research students CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Our track record: top inventions 2. POLYMER BANKNOTES 3. RELENZA FLU TREATMENT 4. EXTENDED WEAR CONTACTS 1. FAST WLAN Wireless Local Area Network 5. AEROGARD 6. TOTAL WELLBEING DIET 7. RAFT POLYMERISATION 8. BARLEYMAX 9. SELF TWISTING YARN 10. SOFTLY WASHING LIQUID CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Profile Trade Small Business- HVAC Large Organizations Sandvik GM Holden Current-CSIRO Category Manager CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Expertise we do not have Together we achieve the best results SET Principles Speed to the Market Expertise we do not have Together we achieve the best results CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Supplier Relationship Management It never Hertz that much ! New Contract executed Contract in place, the contract tells the Supplier what to do and informs the Buyer as to what I can expect , put it in the drawer and move on? Some time later Contract doesn’t produce what you thought it would? Suppliers loses a contract and wonder why? Partnership? CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Clear Expectations Customer and Supplier Expectations Roles and Responsibilities RASIC Service Level Agreements Performance Measurement Performance Surveys Performance Reporting Renewal/Extension and Renegotiation CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Customer and Supplier Expectation The SERVQUAL Model (Adapted) Zeitham, Parasuraman and Berry CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Roles and Responsibilities Reference: ANAO better guide to Contract Management CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

RASIC CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Service Level Agreements CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Service Level Agreements CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Contract review process Key elements Scorecard Rating Target met or exceeded. If the Contractor has exceeded the Target, a comment should be inserted in the cell Improvement required. This rating should be discussed with the supplier as an opportunity to improve. The Contract Owner will monitor these items and endeavours to change this rating to “Green” as the performance improves. Once again, a comment should be inserted in the cell as a reminder of the gap to goal performance. Target missed. Any metric rated with a Red X requires immediate attention and action. This rating should be discussed with the supplier as early as possible and plans made to correct the undesirable situation or occurrence/s. X CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Performance Measurement CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Performance Measurement CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Performance Measurement CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Performance Measurement CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Performance Surveys CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Renewal/Extension and Renegotiation CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Value adds Training Supplier Presentations Supplier attendance at conferences Supplier displays on CSIRO sites SA Gas Retailer value add CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Performance Reporting Executive summary Internal Executives/ Delegates External-Suppliers Executives Highlights of the supplier performance Continuous improvements initiatives Environmental Initiatives Spend analysis (Internal) Cost savings (internal) CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Supplier Relationship Experience CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

QUESTIONS ? CSIRO: positive impact | Supplier Relationship Management | Peter Silveira

Thank you CSIRO Procurement Peter Silveira Category Manager e peter.silveira@csiro.au w www.csiro.au