Supplier Performance Management (SPM): Scoring and Grading To begin the grading and scoring process you must be sure you are in Edit Mode within the survey content section. Change the Display by clicking on the drop-down menu, and then select Scoring. 1 2 2 1 Page 1

Supplier Performance Management (SPM): Scoring and Grading There are four main scoring elements: Weight Importance Target Grade Pre-Grade We will cover each element in this QRG The “Overall %” column is generated by the system and tracks the total percentage for each of the four main scoring elements. Each element will affect the Overall % based on the numbers you assign to them. 3 3 3 3 3 4 4 Page 2

Supplier Performance Management (SPM): Scoring and Grading Scoring Weight - The Weight is the relative level of importance for the survey question or section that it is associated with. Questions that are more important should be given a higher weight compared to questions that are less important. In this example, we have 8 sections on our survey. We have assigned a higher weight to the “Contract Compliance” (25%) and the “Financial, Pricing and Risk Management” (25%) sections and a lower weight to the “Innovation and Technology” section (5%). Notice that the sum of all the weights equal 100. The “Introduction” section does not require a response from the survey participants so the weight is “0”. The “Additional Feedback” section is optional so we also gave it a weight of “0”. 5 5 7 6 6 8 7 8

Supplier Performance Management (SPM): Scoring and Grading Importance - Assign Importance points to survey questions that require a response. Assign each question a ranking between 0–10 points, with 10 being the most important. Note: Be aware that if the importance is set to “0” the question will not be scored. In this example, section 6 has a weight of 25. When we add the importance, the percentage for each question will change based on the Importance. In this example, question 6.1 has an importance of 7 and the overall % for question 6.1 is automatically calculated at 8.75 points. Question 6.2 has an importance of 3, making the overall % for question 6.2 equal 3.75 points. By changing the Importance we see a 5 point difference between the two questions. Note, If all of the questions have the same importance the overall % for each question will be the same 9 9 10 10 Page 4

Supplier Performance Management (SPM): Scoring and Grading Target Grade – For each question, you have the option to enter a target grade. If the supplier’s grade falls below that target, the grade is highlighted in Red so that it stands out on the Scorecard and the team can work on a corrective action plan to raise that score. Grades that are below the target grade show up in red. Grades that are above the target grade shows in black. 11 11 12 12 Page 5

Supplier Performance Management (SPM): Scoring and Grading Pre-grading allows you to automatically assign grades based on participant responses. When you set the Pre-Grade field value to “Yes” for a question that has a predefined set of answers you can effectively automate the scoring process by defining in advance the points assigned to the ‘ideal’ answer. In this example, we know that the Overall % for this section is 20 points (20% of 100 points) and the total points for question 2.1 is 10 points (10% of 100 points) If the respondent selects “Shows little interest”, the Ariba system will automatically give a score of 2.5 points (10 points possible for question 2.1 X 25% points assigned to response “Shows little interest”.) 13 13 14 15 14 15 Page 6

Supplier Performance Management (SPM): Scoring and Grading Click Update and review the changes. If everything looks ok, click Next to move on to the Summary screen 16 17 16 17 Page 7