1. SCC Supplier Performance Management (SPM) Training
April 2017

2. What is Supplier Performance Management (SPM)?
Module 1

3. 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.

4. 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

5. 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

6. SPM Benefits to Suppliers
Visibility into issues
Joint process improvement
Opportunities for business incentives
Relationship strategy
Introduce new supplier products and services

7. 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

8. 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

9. 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