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Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
Driving Supplier Behavior with Ariba's SPM Solution
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Driving Supplier Behavior with Ariba's SPM Solution

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Ariba's Supplier Performance Management tool is an excellent way to drive supplier behavior to better meet your business needs. In this session, you will hear from a customer who is using this tool …

Ariba's Supplier Performance Management tool is an excellent way to drive supplier behavior to better meet your business needs. In this session, you will hear from a customer who is using this tool to give constructive feedback to their suppliers. You will also hear from a consultant from the Ariba Best Practice Center in regards to such topics as developing KPIs for your suppliers, and how to best approach corrective action plans with them. This session will be interactive, so please bring your own experiences as well, and be ready to discuss.

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  • Supplier Performance Management (SPM) is a process that an organization uses to effectively communicate strategy and define performance objectives as aligned with the enterprise spend strategy and measure how those objectives are being met. The primary goals are to improve quality for a reduced cost and, at the same time, mitigate supply risks. It is also important to view SPM as a tool that can be used to improve the company-supplier relationship and create a more collaborative supply chain environment.
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    1. Driving Supplier Behavior with the Ariba Supplier Performance Management Solution Michael Strickland, Sr Vendor Relations Analyst, FRBNY @NYFed_news Gretchen Gayowski, Sr. Risk Analyst, PrimeLending March 2014 #AribaLIVE @ariba © 2014 Ariba – an SAP company. All rights reserved.
    2. Agenda • • • Welcome SPM Overview Customer Stories Federal Reserve Bank of New York PrimeLending • • 2 Best Practice Recommendations Closing Remarks and Takeaways © 2014 Ariba – an SAP company. All rights reserved.
    3. Supplier Performance Management • SPM Goals Improve quality Reduce costs Mitigate supply risks Improve collaboration and supplier relationships • SPM Projects Overview, Documents, Tasks, Team Recurring Phases, tasks and documents 3 © 2014 Ariba – an SAP company. All rights reserved.
    4. Scorecards and Surveys Scorecards • Key Performance Indicators • KPI Sections • KPI Source Data Survey: sections or questions Reports Entered directly • 4 Scoring © 2014 Ariba – an SAP company. All rights reserved. Surveys • Sections • Questions • Scoring • Participants Internal and External • Surveys Scorecard source data Stand alone
    5. Welcome Michael Strickland Senior Vendor Relations Analyst The Federal Reserve Bank of New York Michael Strickland is a Senior Vendor Relations Analyst at The Federal Reserve Bank of New York. He received his B.S. in Computer Information Systems from Shaw University in Raleigh, NC. After graduating Michael worked for Cisco Systems and Marriott International, Inc. and then moved to New York to work for JP Morgan Chase as a business analyst. In 2010 Michael became a consultant at the Federal Reserve before taking the role of Sr. Vendor Relations analyst in 2012 with the Vendor Management and Procurement group. In addition to FRBNY, Michael DJs around New York and is an enthusiastic Chicago sports fan. He currently resides in Brooklyn, NY with his wife Dioni and their dog TJ. Michael can be contacted at michael.g.strickland (at) ny.frb (dot) org. 5 © 2014 Ariba – an SAP company. All rights reserved.
    6. Customer Story - FRBNY • Federal Reserve Bank of New York The Federal Reserve seeks to promote full employment and stable prices -- essentially, we support the public interest in sustainable economic growth at the national and local levels. In taking forward the Fed’s dual mandate, the Bank is focused on three primary objectives: Contributing to the development of MONETARY POLICY and executing that policy on behalf of the FOMC Supporting FINANCIAL STABILITY through financial supervision, market and payments system oversight, and lender of last-resort responsibilities Providing safe and efficient FINANCIAL SERVICES to financial institutions, the U.S. government, and foreign central banks 6 © 2014 Ariba – an SAP company. All rights reserved.
    7. Customer Story – FRBNY (cont’d) • Why Ariba? Most integrated, holistic solution Ability to search 700k+ supplier network for potential diverse suppliers Robust category management solution provides more opportunity for diverse suppliers Solution demonstrated simplistic functionality with the most flexibility Least amount of configuration or customization required Shortest window to Implementation and/or Proof of Concept (POC) Based on a single platform (no 3rd party integration) Able to “upload” multiple sources of external/internal diversity data points Potential to expand into FRS P2P objectives (eSourcing and Contract Management) 7 © 2014 Ariba – an SAP company. All rights reserved.
    8. Customer Story – FRBNY (cont’d) • Why Ariba? Online Tier II module, while functional and well integrated with the solution, will need to be tailored to meet our needs. Leverages D&B data for primary supplier diversity enrichment. Other enrichment sources of our choosing can be incorporated. Uses an offshore, wholly owned subsidiary to enrich portions of the data which is still stored onshore. An onshore-only option is available at an additional cost. Uses a 24x7, global, "follow the sun" model for help desk support. A customized, onshore (i.e. U.S. only) support model is available for an additional fee. 8 © 2014 Ariba – an SAP company. All rights reserved.
    9. Customer Story – FRBNY (cont’d) • Supplier Performance Management Templates – Preset formats used as a baseline in the application to be utilized when new projects/events are undertaken and prevents recreating efforts on the administrator’s part. Key Performance Indicators (KPIs) – Draft performance metrics that suppliers are rated against for an organization to measure progress towards its goals. Scorecards – 9 A graphical representation of the progress over time of some entity, toward some specified goal or goals. © 2014 Ariba – an SAP company. All rights reserved.
    10. Customer Story – FRBNY (cont’d) • 10 Templates © 2014 Ariba – an SAP company. All rights reserved.
    11. Customer Story – FRBNY (cont’d) • 11 Templates © 2014 Ariba – an SAP company. All rights reserved.
    12. Customer Story – FRBNY (cont’d) • 12 KPIs © 2014 Ariba – an SAP company. All rights reserved.
    13. Customer Story – FRBNY (cont’d) • 13 Scorecards © 2014 Ariba – an SAP company. All rights reserved.
    14. Customer Story – FRBNY (cont’d) • Supplier Performance Management Surveys – The use of questionnaires and/or scorecards in Ariba to collect data from internal/external users for the purpose of gathering information about an organization or a project/event Tasks Create recurring instances in Ariba to automatically alert project owners of assigned roles – Automatically start tasks created to begin at a stated time by administrator – 14 © 2014 Ariba – an SAP company. All rights reserved.
    15. Customer Story – FRBNY (cont’d) • 15 Surveys © 2014 Ariba – an SAP company. All rights reserved.
    16. Customer Story – FRBNY (cont’d) • 16 Surveys © 2014 Ariba – an SAP company. All rights reserved.
    17. Customer Story – FRBNY (cont’d) • 17 Surveys © 2014 Ariba – an SAP company. All rights reserved.
    18. Customer Story – FRBNY (cont’d) • 18 Surveys © 2014 Ariba – an SAP company. All rights reserved.
    19. Customer Story – FRBNY (cont’d) • 19 Tasks © 2014 Ariba – an SAP company. All rights reserved.
    20. Customer Story – FRBNY (cont’d) • How did we leverage BPC? Maintain close relationship with BPC to ensure all aspects of the SIPM tool is understood and establish best practice Facilitate meetings with BPC and business partners to educate users on the many portals within the Ariba SIPM tool to fit user needs Utilize online tools to collaborate with BPC in real time to work through navigating SIPM modules, libraries, tasks and reports 20 © 2014 Ariba – an SAP company. All rights reserved.
    21. Customer Story – FRBNY (cont’d) • Recommendations Take advantage of the BPC’s vast knowledge of the SIPM module and attend training when offered to become the subject matter expert around Ariba’s SIPM tool Draft detailed and comprehensive “blueprints” for internal/external user surveys and scorecards to ensure all information gathered meets requirements Create generic templates from the requirements and leverage any and all information to set baselines for future events and projects 21 © 2014 Ariba – an SAP company. All rights reserved.
    22. Welcome Gretchen Gayowski Senior Risk Analyst PrimeLending Gretchen Gayowski is currently a Senior Risk Management professional at PrimeLending focusing on Supplier Risk Management and the implementation of Ariba SIPM and Contract Management Professional. Prior to joining PrimeLending, Gretchen held the position of Sr. Manager at MCI/Worldcom for 12 years with primary focus on supplier and contract management from within the engineering organization and later within the Procurement Operations organization. In addition, Gretchen supported Verizon as a Sr. Consultant for 2 years focusing on the integration of MCI and Verizon purchasing groups through the optimization of existing business processes including supplier management. Aligning businesses within ever changing regulatory environments including Sarbanes-Oxley (SOX) and other financial industry regulations are a proven area of excellence for Gretchen. Gretchen was the 2004 recipient of the MCI Outstanding Achievement award in Finance for her work aligning Procurement process improvements within the scope of the, at that time new, SOX regulatory compliance environment. Detailed experience with spend analysis and the integration of this data into ongoing purchasing and sourcing decision making activity have been key components to Gretchen driving successful business transformations within procurement organizations. Additional supply management experience includes the development of RFP’s and SOW’s, vendor solicitation, analyzing/negotiating vendor proposals, contract negotiation, vendor selection, on-going performance management using survey’s and scorecards, and contract compliance. Gretchen holds a BA from Hood College and MLA from Southern Methodist University. Gretchen pursued a post graduate certificate in dispute resolution and negotiation from Southern Methodist University because she is a firm believer that through collaboration we can all achieve great success. 22 © 2014 Ariba – an SAP company. All rights reserved.
    23. Customer Story - PrimeLending • • • • • • • More than 300 branches and 2,800 employees in 44 states Licensed to originate loans in all 50 states A subsidiary of PlainsCapital Bank, PrimeLending is owned by a financially strong public parent company, Hilltop Holdings (NYSE: HTH) Offers the stability of a national lender with the agility to embrace change Driven by a people-centric culture and the backing of a well-capitalized financial institution Ranked No. 4 nationally in 2012 for overall purchase funding volume* PrimeLending is poised for tremendous growth and leadership in mortgage lending * Ranked by Marketrac powered by CoreLogic for number of purchase units for January through December 2012. 23 © 2014 Ariba – an SAP company. All rights reserved.
    24. Why PrimeLending Utilized the Ariba Solution • • • • • • 24 Audit Controls User Friendly – Interface is very intuitive Allows for a quick start “out of the box” as well as the opportunity for detailed customization Allows for continual improvement and “tweaking” Metrics and Measurements and Reports Ability to grow and adapt to new requirements © 2014 Ariba – an SAP company. All rights reserved.
    25. Why PrimeLending Utilized the Ariba Solution (cont’d) • Collecting and Tracking of supplier documentation and expiration of certain documents Can keep all required documentation in one place Nag Notices • Automatic review and approvals built into Tasks Alerts and “to do” tracking for project owners • 25 Automatic administration of surveys and scorecards © 2014 Ariba – an SAP company. All rights reserved.
    26. How We Use the SPM Module • Management of Supplier Performance Management of Key Performance Indicators (KPIs) through the use of Surveys and Scorecards Audit Control • Organization of key supplier-specific documents Manage Required performance documentation in one place Audit Control 26 © 2014 Ariba – an SAP company. All rights reserved.
    27. Recommendations for Other Customers • Engage key stakeholders early and often while developing your SIPM process Validate any and all changes or enhancements to your existing processes to exhaustion • • Develop baseline metrics so success and opportunity can be accurately measured Utilize Ariba for administrative tasks such as: Tracking information Building reports Version control of working documents 27 © 2014 Ariba – an SAP company. All rights reserved.
    28. How PrimeLending Used BPC for SIPM • • 28 Professional Guidance for Customization of the Surveys and Scorecards to move beyond the Best Practice template and truly reflect the metric needs of our organization Benchmarking © 2014 Ariba – an SAP company. All rights reserved.
    29. Best Practice Suggestions - KPIs Master KPIs in Sourcing Library Link KPIs to Survey Sections Scorecard Templates Scorecard Scorecard Survey KPI 1 Sourcing Library Section 1 Question 1.1 KPI 2 Question 1.2 Section 2 Scorecard Scorecard SPM Projects 29 © 2014 Ariba – an SAP company. All rights reserved. Scorecard Question 2.1 Question 2.2 Question 2.3
    30. Best Practice Suggestions - KPIs • • • • Utilize standard KPIs for performance metrics that apply to all suppliers Develop team/category-specific KPI library as needed Include a supplier-specific section in the scorecard and survey KPI Examples: Quality Contract Compliance Social Responsibility Supplier Section 30 © 2014 Ariba – an SAP company. All rights reserved. Account Management/Customer Service Innovation and Technology Financial and Pricing Management
    31. Closing Remarks • • • • • 31 Engage Stakeholders Early Develop metrics of success Determine standards for measurement and build a KPI library Build Templates with custom scorecards and surveys based on the library to meet various business needs Utilize available help and information (BPC, Webinars, Training) © 2014 Ariba – an SAP company. All rights reserved.

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