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Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
Smarter Supplier Management  - Improving Supplier Performance Through Better Collaboration and Monitoring
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Smarter Supplier Management - Improving Supplier Performance Through Better Collaboration and Monitoring

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  • Speaking Notes: If procurement is about maximizing the value of supply, then strategic sourcing, as typically applied, addresses only a single element: pricing and TCO. Sourcing can only do so much to tap the true value of strategic relationships, drive innovation and improve supplier capabilities and performance over time. It is true that a strong sourcing process, embedded within a robust category management methodology, should set up the appropriate supplier relationship management (SRM) processes for success, especially surrounding strategic supplier relationships. But once preferred suppliers in a rationalized supply base are put in place, the game shifts toward joint value creation. This demands a collaborative approach that may prove difficult for many procurement organizations, as it requires new skills, processes, tools and organizational support.
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    • 1. B Smarter Supplier Management – Improving Supplier Performance Through Better Collaboration and Monitoring Sundar Kamakshisundaram – Ariba Olivier Veilhan – Bouygues Telecom Heiko Spanuth – KONE Rachel Lee – Norland Managed Services© 2012 Ariba, Inc. All rights reserved.
    • 2. AgendaIntroductionPanel Discussion Olivier Veilhan – Bouygues Telecom Heiko Spanuth – KONE Rachel Lee – Norland Managed ServicesQ&A2 © 2012 Ariba, Inc. All rights reserved.
    • 3. Strategic Sourcing Is Foundational, but SupplierManagement (SRM) Is Transformational... Source: Procurement Key Issues Study, The Hackett Group, 20113 © 2012 Ariba, Inc. All rights reserved.
    • 4. Defining Supplier Management orAlternately Called “SRM”… “Supplier Management” is multi- faceted and touches many aspects of Business Commerce Registration & On-boarding Supplier Process Portals • Supplier Information Management that unifies platform, process and supplier profiles across the Supplier company and keeps it current, complete and correct. Discovery • Highly usable web-based portal for suppliers to register Supplier Performance and manage information collaboratively with customers Management Management • Supplier Performance Management capabilities or SRM including Process Workflow and approvals, SurveysVendor Master and scorecards, flexible role based dashboards and Management Diversity/Green/ Corporate customizable reports Risk Responsibility • A Robust technology platform that seamlessly Management integrates in-context Supplier info such as Parentage, Financials, Diversity and Sustainability to manage and mitigate Supply Risk • A unified Supplier Record merging data and process flows to third party systems and data sources4 © 2012 Ariba, Inc. All rights reserved.
    • 5. What is Supplier RelationshipManagement (SRM)*? “Key processes, definitions, tools, and roles to drive coordinated proactive management of suppliers across the business” Supplier Performance Supplier Development Supplier Stratification SRM Governance Management and Collaboration How should supplier How should supplier-facing How should supplier How should capabilities of relationships be stratified staff be organized and performance be managed existing suppliers be based on strategic internal collaboration and across different supplier developed to deliver importance to prioritize supplier interactions be types and strata to continuous improvement resources and tailor conducted? maximize performance? and ongoing cost management processes? reduction? • Supplier Stratification • Team Structure and • Function KPI • Supplier Development Definition Roles Development Needs Definition • Supplier Stratification • Ongoing Governance • Supplier Performance • Supplier Development Criteria • SRM Competency Target, KPI and Program Definition • Supplier Stratification Management Scorecard Definition • Ongoing Supplier Process • Ongoing Supplier Development Measurement. Includes Cost, Quality, Risk, etc. Executive Supplier Scorecard Supplier Name Executive Strategic Company- Management Executive Management Team Roles Executive Sponsor Executive Sponsor Executive Executive Sponsor Executive Sponsor Executive SRM Lead: Account Manager: Functional Area / Category: Site: Intellectual capital Company Supplier Supplier Contact: Scorecard Date: Wide Partners Management Team Roles Sponsor Sponsor Status Definition Supplier Representatives: Strategic Team Roles Good Meets or exceeds performance target Enterprise Partners Relationship Relationship Relationship Management Lead Relationship Relationship Management Lead Relationship Fair Poor Does not meet performance target; acceptable variance; improvement needed Unacceptable variance from performance targets; action required Company Representatives: Joint sharing Joint 80% Leads Roles Management Lead Relationship Management Lead Relationship Invalid Invalid percentage data has been entered into the cell Relationship Financial Value Strategic Leads Roles Leads Roles Company Management Lead Supplier Management Lead KPIs Metrics Performance Targets Performance Trend Supplier Score (Scale of 1-10) Comments capability process Business Office Roles Operations Management Team Roles Metric Metric Data Score Unaccept- Last Last Last One Qtr Metric KPI investment improvement Accept- KPI Target Multi- Multi- KPI Wt. Metric Today Strategic Suppliers Wt. Total Source Range able Range able Range Yr Qtr Mo Trend Score Score Suppliers Business Office Roles Operations Management Team Roles of Supply - Assurance ≤ ≥ h Business Office Roles Operations Management Team Roles Delivery On time delivery percentage 50% tbd 0 - 100 80 81 - 89 90 90 80 85 90 9.0 Contract Communications Operations Initiative Risk 15% Management Contract Management Management Communications Management Management Operations Management Management Initiative Management Management Risk Management Delivery conformance Additional available capacity 50% 56% 100% tbd tbd 0 - 100 0 - 100 ≤ ≤ 80 80 81 - 89 80 - 89 ≥ ≥ 90 90 80 50 78 75 85 80 95 90 h h 9.5 9.0 9.3 supplier Environment / Assurance of Communications Contract Operations Initiative Risk Capability Systems & Business collaboration Supply - Company Company Management Company Management Company Management Company Management Management 15% ≤ ≥ i Core Core Suppliers Supplier Supplier Supplier Supplier Supplier Financial stress Credit score 33% 11% 100% tbd tbd 0 - 60 0 - 20 ≤ 48 16 49 - 53 17 ≥ 54 18 40 15 54 16 58 17 50 18 h 8.3 9.0 8.8 Suppliers Financial Legal & Audit Customer Rejection rate Weighted non-comformance rate 26% tbd 0 - 100 ≤ ≤ 80 81 - 89 ≥ ≥ 90 70 75 80 90 h h 9.0 acquisition process Escalation Performance 26% tbd 0 - 100 80 81 - 89 90 80 83 85 91 9.1 Performance Financial Satisfaction Customer Management Management / CAR by supplier Value integration Quality Management Support Audit Legal & Management Escalation Performance 25% Process chage 16% tbd 0 - 60 ≤ 48 49 - 53 ≥ 54 40 45 50 60 h 10.0 Performance Financial Support Satisfaction Customer Management Management 20% Management Company Company & Audit Legal Management Company Satisfaction Escalation Company Performance Company Audit rating 16% tbd 0 - 60 ≤ 48 49 - 53 ≥ 54 30 35 40 42 h 7.0 Basic Performance Support Management Management Financial Value Basic Suppliers Transactional Suppliers Suppliers Management Supplier Supplier Management Supplier Supplier Supplier Supplier 1 Auidt response time Response to standard request 16% 9% 100% tbd tbd 0 - 60 0 - 100 ≤ ≤ 48 80 49 - 53 81 - 89 ≥ ≥ 54 90 40 60 43 70 45 80 56 91 h h 9.3 9.1 8.9 creation Supplier 2 Supplier 3 Response to emergency request Communication about potential problems 9% 9% tbd tbd 0 - 100 0 - 100 ≤ ≤ 80 80 81 - 89 81 - 89 ≥ ≥ 90 90 90 70 80 75 70 76 60 78 i h 6.0 7.8 opportunity Flexibility to change 9% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 80 85 85 91 h 9.1 Roles Company Team Member Supplier Team Member ≤ ≥ h Non-Preferred Customer services 9% tbd 0 - 100 80 81 - 89 90 70 75 80 85 8.5 Services 15% Efficiency in providing information 9% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 90 80 70 60 i 6.0 Local support efficiency 9% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 75 80 85 91 h 9.1 Production lead-times 9% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 90 80 70 60 i 6.0 Competitiveness of Production 9% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 75 80 85 90 h 9.0 lead-times Stability of lead-times 9% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 75 80 80 80 g 8.0 Compliance with quoted lead- 9% 100% tbd 0 - 100 ≤ 80 81 - 89 ≥ 90 75 80 85 90 h 9.0 8.0* Hackett Group Study on SRM times
    • 6. Value of SRM?• Value beyond Sourcing Savings World-Class procurement groups create: TCO reduction and „disciplined growth‟ – 3.6x greater savings from SRM than peers in Non-cost performance improvement direct spend• The Growth Agenda – 13.1x greater savings from SRM than peers in indirect! More innovation Source: 2011 Hackett Procurement Benchmark Emerging markets Incremental revenue from “Agility” (variabilization, flexibility) supplier innovation efforts• Supply Risk facilitated by Procurement 8.3% Viability/capacity Compliance (quality, regulatory, etc.) 3.5%• Third-party governance• Supply Chain vs. Supply Chain Multi-tier management• Peer Group Top Quartile Efficiency/automation of SRM Source: 2011 Hackett Procurement Benchmark6 © 2012 Ariba, Inc. All rights reserved.
    • 7. B Bouygues Telecom Olivier Veilhan, Head of Purchasing and IT Processes© 2012 Ariba, Inc. All rights reserved.
    • 8. Agenda • Ariba Solution within Bouygues Telecom • Supplier Relationship Management • 360° View • Current situation • Next Steps8 © 2012 Ariba, Inc. All rights reserved.
    • 9. Bouygues Telecom : 3rd operator in France • Key dates  Creation of company: October 1994  Commercial launch: 29 May 1996  Acquisition of fixed network: 1 July 2008 • Key figures  11,304,000 mobile customers (end December 2011)  1,241,000 fixed broadband customers (end December 2011)  9,800 employees (end 2011)  5.741 B€ sales in 2011 • Ownership structure 89.5% 10.5%9 © 2012 Ariba, Inc. All rights reserved.
    • 10. Purchasing Organisation Over 2.4 B€ ordered in 2011 80 people in purchasing organisation Center of Service, IT, Process Performance and Sustainable development Network Handsets Marketing, adv. com, General supplies IT Fixed services10 © 2012 Ariba, Inc. All rights reserved.
    • 11. Ariba On-demand Solution within Bouygues Telecom • Ariba upstream solution since end 2010 : Sourcing, Supplier Information and Performance Management All commodities are sourced in Sourcing 200 sourcing events done today 300 internal users (buyers and team members) 900 suppliers contacts • Contract module to be deployed in june 201211 © 2012 Ariba, Inc. All rights reserved.
    • 12. Our Goal : 360°-view of Supplier Sourcing events • Sustainable • Financial External Contracts (ratings…) informations • … Supplier Profile Supplier • Surveys Spend • Scorecards Performance © 2012 Ariba, Inc. All rights reserved.12
    • 13. Our Goal : 360°-view of Supplier Supplier Profile Spend Contracts Surveys Sourcing events Scorecards © 2012 Ariba, Inc. All rights reserved.
    • 14. Supplier Profile • Supplier creation initiated by each buyer • Supplier profile to be fulfilled by each supplier at first event All questions are not mandatory at first • Standard Non Disclosure Agreement (NDA) included in the profile, dematerialized. On-line agreement is mandatory to access the event (RFx)14 © 2012 Ariba, Inc. All rights reserved.
    • 15. Subscriber Profile : 60 Questions15 © 2012 Ariba, Inc. All rights reserved.
    • 16. Subscriber Profile : Generic NDA16 © 2012 Ariba, Inc. All rights reserved.
    • 17. Today : Sustainable Infos • Interface with Ecovadis sustainable informations • Ecovadis main scores of suppliers‟ evaluations uploaded in Ariba suppliers profiles, including a link to the Ecovadis supplier profile • Ecovadis provides a file with all the informations • Bouygues Telecom uploads those informations in Ariba suppliers profile every month17 © 2012 Ariba, Inc. All rights reserved.
    • 18. Today : Sustainable Infos18 © 2012 Ariba, Inc. All rights reserved.
    • 19. Today : Sustainable Infos19 © 2012 Ariba, Inc. All rights reserved.
    • 20. Today : Suppliers Surveys • 190 {supplier-contract} surveys done based on an analysis process to identify business critical suppliers/contracts • Evaluations every 6 months • Scoring done in Excel • Evolution to be studied with Ariba Simplify the process of collecting the surveys Implement scoring cards inside the platform20 © 2012 Ariba, Inc. All rights reserved.
    • 21. Today : Supplier Surveys Note des couples Fournisseur – prestation Note des couples Fournisseur – prestation VAGUE 2 VAGUE 1 Zone de risque LIVRAISONS4 Nb de frns ds la zone PDT - SERVICES DEPENDANCE ECONOMIQUE MAITRISE DE LA Évaluation évaluation PRESTATION Opérationnelle Financière MAINTENANCE / RATING FINANCIER SAV DEVISE DE TRANSPARENCE REFERENCE = EURO Évaluation Économique SUBSTITUABILITE RSE / ENVIRONNEMENT RSE / FOURNISSEURS RSE / LAB-SOCIAL rating RSE RSE / ETHIQUE DES écovadis21 © 2012 Ariba, Inc. All rights reserved. AFFAIRES
    • 22. Tomorrow : Enrich the Supplier Vision • Spend informations : extracted from our BW/ERP SAP • Financial informations : Eg : Dun & Bradstreet ratings and informations • Possibly, legal suppliers documentation • To be studied, self registration of new suppliers directly through Ariba22 © 2012 Ariba, Inc. All rights reserved.
    • 23. One-stop Supplier Shopping !23 © 2012 Ariba, Inc. All rights reserved.
    • 24. Thank you for your attention24 © 2012 Ariba, Inc. All rights reserved.
    • 25. B Norland’s Approach to Supplier Management Rachel Lee, Procurement Director© 2012 Ariba, Inc. All rights reserved.
    • 26. Norland at a Glance  Private Limited Company – profits invested in future growth  27 years – Hard Services led FM  Turnover for 2010/11 - £252m - 96% Customer retention  D&B Rating: 2A1  2,452 members of staff - 93% Staff retention  Customer focused Business Units 300 250 200 150 252 100 191.2 211 150.8 50 122.9 0 FY07 FY08 FY09 FY10 FY1126 © 2012 Ariba, Inc. All rights reserved.
    • 27. Our Aim for SRM Gain competitive advantage by truly being a „customer of choice‟27 © 2012 Ariba, Inc. All rights reserved.
    • 28. Our Market • Highly competitive market • Common set of suppliers as our competitors • Suppliers much larger than us • Highly diverse supply chain • Our customers often have greater brand recognition than us28 © 2012 Ariba, Inc. All rights reserved.
    • 29. Key Challenges • Vast number of suppliers • Volume of information needed Including statutory requirement • Downstreamed procurement model • Many touch points with suppliers • Varying service level requirements from our customers29 © 2012 Ariba, Inc. All rights reserved.
    • 30. SRM Objectives • Fast, efficient on-boarding • Statutory compliance • Consistent pricing across our many sites • Common view of supplier performance • In summary Manage our risks Become „customer of choice‟30 © 2012 Ariba, Inc. All rights reserved.
    • 31. Our Market • Highly competitive market • Common set of suppliers as our competitors • Suppliers much larger than us • Highly diverse supply chain • Our customers often have greater brand recognition than us31 © 2012 Ariba, Inc. All rights reserved.
    • 32. Operating Model Supplier Supplier Contract Sourcing Management Performance Self registration (tenders/auctions) (SRM) Supplier selection Supplier data Repository (category/region) Automated (scored) (controlled access) scorecards Drive compliance Credential Search utility Selection decision Performance management (pricing & terms) (negotiation) dashboard32 © 2012 Ariba, Inc. All rights reserved.
    • 33. What We Did • Developed Full and Lite SRM programme • Kept it simple • Extensive stakeholder engagement • Training programme for business managers • Soft skill development for Procurement team • Clarified everyone‟s role in procurement • Continual communication with suppliers33 © 2012 Ariba, Inc. All rights reserved.
    • 34. Barriers to Success • Suppliers don‟t always „get it‟ • Procurement team need ability to „sell‟ • Time and resource available • Trying to get to end game too quickly34 © 2012 Ariba, Inc. All rights reserved.
    • 35. B Ariba and Supplier Performance Management at KONE How ARIBA supports KONE in Supplier Performance Management Heiko Spanuth, Manager, Sourcing Processes© 2012 Ariba, Inc. All rights reserved.
    • 36. KONE – In Brief • KONE provides industry-leading elevators, escalators and automatic building doors innovative solutions for maintenance and modernization • KONE is one of the leading companies in its industry • KONE was founded in Finland in 1910 • KONE operates worldwide • KONE has approx. 35,000 employees • Net sales EUR 5.2 billion (2011) • KONE is listed on the NASDAQ OMX Helsinki since 196736 © 2012 Ariba, Inc. All rights reserved.
    • 37. KONE Sourcing Organization MISSION • Continuously improve customer value and profit contribution by proactively engaging best-in- class suppliers as well as our organization in collaborative teamwork. • Relentlessly provide innovative solutions and reduce total cost of ownership so that KONE is competitively positioned in every market. VISION • To be recognized as a world-class sourcing organization37 © 2012 Ariba, Inc. All rights reserved.
    • 38. KONE Sourcing Organization • Team of approx. 140 central and local dedicated sourcing resources • Category management concept (10 DM categories, 6 NPR categories) • Spend of approx. 2,5 billion EUR (approx. 60% direct materials) • Dedicated supplier quality management team of approx. 35 people38 © 2012 Ariba, Inc. All rights reserved.
    • 39. How KONE Works with ARIBA Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Baseline Evaluate Negotiate Implement Manage ARIBA (=KONE SRM) supports all key phases of KONE‟s strategic sourcing process39 © 2012 Ariba, Inc. All rights reserved.
    • 40. KONE SRM - Objectives • SPEND MANAGEMENT Fast and reliable analyses and savings opportunity identification Automated quarterly Sourcing KPI reporting • SOURCING MANAGEMENT Professional tendering through eRFXs and eNegotiations Sourcing cycle time reduction and increased transparency • CONTRACTS MANAGEMENT Central repository for local and global sourcing agreements Creation of new agreements utilizing up-to-date templates Company wide system based contract approval flow • SUPPLIER PERFORMANCE MANAGEMENT Standardized measurement of supplier performance for direct material suppliers and subcontracting suppliers based on objective criteria for all key suppliers Assessment of supplier risk40 © 2012 Ariba, Inc. All rights reserved.
    • 41. KONE SRM – In Numbers (2011) • Users trained: 230 • Contracts published: 3200 • eSourcing events executed: 300 • Supplier Scorecards run: 66641 © 2012 Ariba, Inc. All rights reserved.
    • 42. Supplier Performance and Risk Management Challenges • Production, employees and customers in all continents • Low volume, high diversity operations, especially in maintenance business • People Flow  Excellence in safety, quality and innovations • Economic uncertainty and increased risk of supplier financial distress • Increased need to manage sub-tier suppliers42 © 2012 Ariba, Inc. All rights reserved.
    • 43. Supplier Classification and Impact on Performance Measurement • Common Long Term plans (3-5 years) • Dedicated Team + Key Account • Supplier scorecard & Risk assessment • Supplier excellent certification Strategic • ... • Common Mid Term plans (1-3 years) • Establishes Dedicated Key Account Preferred • Supplier Scorecard & Risk assessment in place • ... • Common short Term plans (1 year) • Existing Purchasing contract/term and conditions Approved • KPI measurement • ...43 © 2012 Ariba, Inc. All rights reserved.
    • 44. Supplier Scorecards Used in KONE DM Supplier Scorecard Risk Scorecard Quality KPIs Criticality to KONE Logistics and Responsiveness Financial Viability Cost Competitiveness Supplier Dependency Technical Capability Dependency on tier-2 suppliers Service level and Proactivity Supplier Operations Reaction Time Non-stock Criticality to KONE Installation Scorecard Safety KPIs Quality KPIs Cost Competitiveness Service Level Site Management Technical Competence44 © 2012 Ariba, Inc. All rights reserved.
    • 45. Supplier Performance Scorecard Facts & Principles Scorecard Suppliers Frequency • Supplier scorecards are generated and in Scope shared with suppliers based on the Direct Material questionaire results Supplier 150 4 x per year Scorecard • Scores are given by selected individuals from selected functions within KONE Risk Scorecard 120 2 x per year • Scorecards are managed by a central team Installation Subcontracting 200 2 x per year • Suppliers provide initial input for Risk Scorecard Scorecards Other scorecards - on needed • Scorecard outcome is 1 input for KONE‟s basis supplier certification program45 © 2012 Ariba, Inc. All rights reserved.
    • 46. Thank you Any questions?46 © 2012 Ariba, Inc. All rights reserved.
    • 47. Q&A Contact info: Sundar Kamakshisundaram: sundar@ariba.com47 © 2012 Ariba, Inc. All rights reserved.
    • 48. Share This Session…NOW…from your mobile! • All presentations are posted: Guidebook mobile app – Search Apple or Android app store for Guidebook – Enter code “collabor8” Or at Slideshare.net/Ariba • Share via email or social media **Come back soon – we are syncing #AribaLIVE audio and video interviews to the presentations**48 © 2012 Ariba, Inc. All rights reserved.

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