Peter Woon, profile picture
Uploaded byPeter Woon
658 views

HIgh Tech Electronics Logistics and Supply Chain Management Forum, Shanghai 2006

The document is a presentation by Peter Woon, Director of Global Sourcing at Agilent Technologies, given at the High-Tech and Electronics Logistics and Supply Chain Management Conference in Shanghai on March 21-22, 2006. The presentation provides an overview of Agilent, its business segments, global operations, and revenue breakdown. It then describes Agilent's Supplier Relationship Management program, including the components of supplier stratification, governance, performance measurement, and supplier development. The presentation aims to explain the business needs for a common SRM model at Agilent and the benefits of implementing such a program.

Embed presentation

Group/Presentation Title Agilent Restricted Month ##, 200XPage 1 High-Tech and Electronics Logistics and Supply Chain Management Conference Peter Woon Director, Global Sourcing Agilent Technologies HTESCM, Shanghai, 21-22 March, 2006 “Winning through Innovation”
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 2 Presentation Part I : Introduction to Agilent Technologies Part II : SRM in Agilent • Business Needs for a common SRM Model • SRM Components – Stratification – Governance – Performance Measurement – Supplier Development • Benefits of implementing SRM program Q&A Session
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 3 Agilent’s Focus Communications Electronics Life Sciences and Chemical Analysis Our goal is to strengthen Agilent’s position as the world’s premier measurement company Agilent provides core electronic and bio- analytical measurement tools to advance the electronics, communications, life sciences, research, environmental, and petrochemical industries Agilent’s Overview
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 4 Agilent Around the World • Customers in more than 110 countries • More than 60% of revenue generated outside U.S. • Global manufacturing and R&D Agilent Facts $ 5.1 billion (exclude SPG)Net revenue (FY05) Employees 21,000 employees Headquarters Palo Alto, California
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 5 Bio-Analytical Measurement Electronic Measurement Semiconductor Test Solutions $1.42B$3.27B $0.45B Agilent Businesses The world’s premier measurement company Total FY05 GAAP Revenue of $5.1 billion excludes revenues from Agilent’s Semiconductor Products Group. Shared Infrastructure Agilent Laboratories Global Infrastructural Organization Global functional support teams Sourcing, Finance, Information Technology, Human Resources, Workplace Services, Legal, Trade and Tax etc
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 6 Agilent FY05 Revenue by End Markets Chemical Analysis Life Sciences Wireless Wireline General purpose test Semiconductor Test This represents GAAP figures and excludes the revenues of Agilent’s Semiconductor Products Group. 12% 34% 6% 23% 9% 16%
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 7 Agilent Around the World • Customers in more than 110 countries • More than 60% of revenue generated outside U.S. • Global manufacturing and R&D
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 8 FY05 Net Revenue by Geography 38% 39% 23% Total GAAP revenue of $5.1 billion excludes the revenues of Agilent’s Semiconductor Products Group. Americas $1.96B Asia Pacific $1.98B Europe $1.20B 100%=$5.14B
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 9 Agilent’s Industry-Leading Customers Astra Zeneca Aventis BASF AG Bayer AG Boehringer Ingelheim Dana-Farber Cancer Institute DuPont Dow Chemical Exxon-Mobil Eli Lilly GlaxoSmithKline Merck National Cancer Institute Nestle Novartis Pfizer U.S. Army, FDA, EPA, NIH Alcatel Cisco Ericsson Flextronics Fujitsu Huawei IBM LG Lockheed Lucent Motorola NEC Nokia NTT Orange Samsung SBC Singtel Sprint Verizon Life Sciences and Chemical AnalysisElectronic Measurement
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 10 Presentation Part I : Introduction to Agilent Technologies Part II : SRM in Agilent • Business Needs for a common SRM Model • SRM Components – Stratification – Governance – Performance Measurement – Supplier Development • Benefits of implementing SRM Program Q&A Session
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 11 Business need for a common SRM Model • Agilent has realized significant savings and other benefits from outsourcing services previously delivered in-house • Increased reliance on external providers has made effective Supplier Relationship Management (SRM) critical • However, Agilent has lacked a common model and results-oriented approach for optimizing supplier relationship management − Each function had defined its own approaches, tools, and processes for SRM − Agilent had not fully transitioned from people management to SLA management − Roles and responsibilities for SRM had not been clearly defined, reducing effectiveness and proliferating “vendor managers” • As a result, there were clear business need to design and implement a common SRM model to enable leveraging a COMMON process and methodology across the supply base.
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 12 Supplier Relationship Management (SRM) provides a framework for managing supplier interactions throughout the entire supplier relationship lifecycle The Agilent Supplier Relationship Management (SRM) Model: Supplier Development Performance Management SRM Governance Supplier Stratification SRM Definition & Best Practices SRM Systems • Supplier Stratification Definition • Supplier Stratification Expectations • Supplier Stratification Execution • Capability and Functionality Needs Analysis • SRM Model Definition • Teams, Roles and Competencies Definition • Ongoing Governance Management • SRM Adoption Management • Performance Management Definition • Performance Management Tool Development • Ongoing Supplier Performance Management • Supplier Development Needs Definition • Supplier Development Program Definition • Ongoing Supplier Development • Systems Selection and Deployment • Best Practices
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 13 Components of Supplier Stratification Supplier Stratification Supplier Stratification Definition Supplier Stratification Expectations Supplier Stratification Execution Definition of supplier tiers Characteristics of supplier tiers Expectations by supplier tier Supply Base guidelines Stratification criteria Stratification process Stratification tools
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 14 Supplier stratification process One of the key activities in the Supplier Relationship Management (SRM) effort was to stratify suppliers in the areas like HR, WPS, IT and Marketing etc. Supplier Stratification was required to effectively prioritized supplier relationship management focus on strategic and core suppliers The stratification exercise also revealed that approx 30% of the spend $$$ were with the “tail” of ~4,400 basic suppliers across the areas Agilent has an opportunity to realize savings in the short term by rationalizing suppliers in specific target categories where significant savings opportunities exist
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 15 IT, WPS, HR, and Marketing, all categories where SRM is underway, each have a long supplier “tail” The “tail”: • Average of 30+% of spend • ~4,400 suppliers (98%) Spend # Suppliers IT WPS HR Marketing 60% 14 800+ 80% 29 55% 16 80% 25 2,300+ 650 800+ Supplier tail in each function represents opportunity for rationalizing suppliers in specific sub-categories where significant savings are possible
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 16 Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Strategic Suppliers Core Suppliers Basic Suppliers Stratification Tiers and Characteristics Strategic Suppliers: Critical to operations of functional group(s) and to long-term functional goals Require significant functional resources and investment Core Suppliers: Important to operations of functional group(s) and to long-term functional goals Potential incremental value from developing ongoing relationship Difficult to replace Basic Suppliers: Short-term, transactional relationships Minimal investment Purely cost-driven performance management Do Not Do Business With Strategic Company-Wide Partners: Qualified as Strategic Supplier Multi-dimensional relationship (multi-function, buy-sell, etc.) Typically require high levels of cross-functional resources and investment Do Not Do Business With: List of suppliers with whom Agilent has elected not to do business 80% Financial Value 20% Financial Value Strategic Company- Wide Partners The first three supplier tiers are determined at the Function level, allowing for flexibility. The highest tier is determined across Functions, providing a company-wide perspective.
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 17 Relationship Model
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 18 Components of SRM Governance SRM Governance Teams, Roles, and Competencies Definition Ongoing Governance Management SRM Adoption Management SRM Team structure by strata SRM roles and responsibilities SRM competencies definition SRM competency assessment and development process SRM review structure and processes Day-to-day supplier management processes Escalation process Process and tools for measurement of SRM adoption and effectiveness Ongoing process to incorporate feedback
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 19 Teams responsible for managing supplier relationships the team objectives Operations Management Team Executive Management Team Assess supplier operational performance Assess financial performance Analyze and address escalation issues Assess supplier operational performance Develop suppliers to resolve capability gaps Discuss new capabilities Partner with program managers and content experts Assess supplier financial performance Manage supplier contracts and service level agreements Manage new supplier services and change order requirements Business Office SRM Lead Lead internal SRM team collaboration and Assist with interactions with suppliers and business partners Ongoing Operational Activities SupplierRelationshipManagement(SRM)Operations
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 20 What are the structure and roles of current SRM teams? Operations Management Team Executive Management Team Business Office SRM Lead Ongoing Operational Activities SupplierRelationshipManagement(SRM)Operations Supplier Personnel Agilent Personnel Ops Mgmt. Lead Financial Performance Mgmt. Contract /Sourcing Management Relationship Risk Mgmt. Communications Management Legal & Audit Support Client Relationship Mgmt. Lead Sales Relationship Core Support Delivery Management Project Management Transition Management Performance Management Supplier Development Mgmt. Customer Satisfaction Mgmt. Escalation Management Other Supplier Team Members Other Supplier Leads Agilent Executive Sponsor Other Executive(s) Client Relationship Sponsor SRM Lead
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 21 Components of Performance Management Performance Management Definition Performance Management Performance Management Tool Development Ongoing Performance Management Performance Management components and process definition Performance Management team roles and responsibilities Performance Management goals and objectives Performance Management review structure and processes Day-to-day metric tracking and supplier communication Escalation process and management of supplier accountability Supplier objective and KPI alignment with Functional goals and targets SLA visibility and management Performance tracking tools: • Scorecards • Supplier Metrics Registers • Action Items • Supplier Surveys
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 22 KPI Deinfition Example Delivery System Owner Average spend per mile in period $0.33 / flight mile in 1Q04 BTI feed Travel SRM Mngr rental $ daily rate over period $74 / day in May 03 Hertz download Travel SRM Mngr Online Booking Tool Operational Savings Net $ savings due to online booking $102,000 saved in 1Q04 Finance feed Travel SRM Mngr Average Cost per Hotel night booked Average cost over all hotel nights book through Travel $123.24 / night Finance feed Travel SRM Mngr BTI Agency Costs $389,000 in 1Q04 BTI feed BTI Average Domestic Ticket Price Average price over period $469 Finance feed BTI Price Average price over period $824 Finance feed BTI Business vs. First class metric Ratio of first class to business tickets issued during period 0.21 in FY02 BTI feed Travel SRM Mngr Average spend per mile by airline Average spend by airline over period $0.31 / flight mile on AirAgilent Finance feed Travel SRM Mngr Function KPI Catalog KPI Deinfition Example Delivery System Owner Average spend per mile in period $0.33 / flight mile in 1Q04 BTI feed Travel SRM Mngr rental $ daily rate over period $74 / day in May 03 Hertz download Travel SRM Mngr Online Booking Tool Operational Savings Net $ savings due to online booking $102,000 saved in 1Q04 Finance feed Travel SRM Mngr Average Cost per Hotel night booked Average cost over all hotel nights book through Travel $123.24 / night Finance feed Travel SRM Mngr BTI Agency Costs $389,000 in 1Q04 BTI feed BTI Average Domestic Ticket Price Average price over period $469 Finance feed BTI Price Average price over period $824 Finance feed BTI Business vs. First class metric Ratio of first class to business tickets issued during period 0.21 in FY02 BTI feed Travel SRM Mngr Average spend per mile by airline Average spend by airline over period $0.31 / flight mile on AirAgilent Finance feed Travel SRM Mngr Function KPI CatalogFunction Supply KPI Catalog Re f # Action Ite m Ow ner Priority D ate Identified D ate D ue St atus N otes / C om m ents Gov-a-0 24 R eview over all co ntr act in dic ato r (yellow v s. red) on B. sco recard an d dashb oard D oug K nigh t / V innie E gizi Low 3-D ec -0 3 15-A pr-0 4 O pen 3/17: A gile nt content with curren t - will re vie w in April Gov-a-0 25 R e-evaluate weights on B . sc oreca rd D oug K nigh t / V innie E gizi Low 3-D ec -0 3 15-A pr-0 4 O pen HP reco m m endatio n provided - need a pproval from D oug . 3 /17: A gilent con tent w ith curren t - will rev iew in A pril Gov-a-0 30 A ss ess if TQ RD C E is be st approa ch to m e asuring c us tom er sa tisfac tion D oug K nigh t M e d 3-D ec -0 3 28-A pr-0 4 C los ed 3/17: A dditional q ue stio ns to be integrate d and pro vid ed to larger a udienc e. Gov-a-0 31 R eview and ag re e on on-g oing c ontent require m ents for G ove rn an ce m ateria ls (e.g., freq uenc y of tower “d eep div es”) D oug K nigh t / V innie E gizi / K im N utter M e d 13-Feb-04 15-A pr-0 4 C los ed new m eeting struc ture es tablis hed s pecific to conten t requirem ents . Gov-a-3 3 P rovid e m ore detailed defin ition o f what c onstitu tes a n IM A C S cott Cobe rn us M e d 17-M ar-04 23-A pr-0 4 Can celle d m erge d with item # gov-a-40 Gov-a-3 4 E valu ate pre-paym ent options an d provide A gile nt feedba ck. Tim K raem er M e d 17-M ar-04 24-M a r-04 C los ed 3/19: C IBC ad jus ted base line s eas onally. 4/2 : not easy - req uires a lot of ac cr ua ls an d deferrals. S o poss ible bu t want to avoid. Tim to fo rm ally com m u nicate to Vinnie/D oug. 4 /16: Tim m ade rec om m end ation to not do this. Gov-a-3 5 A ss ociated entities listin g/E x hibit 7 D ale H oppenrath M e d 3-M ar-04 31-M a r-04 C los ed 4/2: rec eived new ex hibit 7 / new s ite listin g Gov-a-3 6 A gree to process to a ttain brea ch ite m c losur e (i.e., s ig n-off th at co ntractual de liverable req’ts have be en m e t). V inc ent E gizi, D oug K nigh t M e d 24-M ar-04 30-A pr-0 4 O pen 4/16: m eetin g s che duled 4 /28/04. M ichelle pulling data Gov-a-3 7 A ss ess how to m ak e the CLM inventor y pipe line v isible Jo hn M elin M e d 24-M ar-04 30-A pr-0 4 O pen Gov-a-3 8 E xp lo re leve ra ge poin ts from A ltiris V inc ent E gizi M e d 24-M ar-04 29-M ay-0 4 O pen 4/2: onc e ass et m gt is stable HP w ill lo ok at this. Gov-a-3 9 R eprese nt break -fix as p ercentag e that hit on e d ay vs. the avera ge Jo hn M elin, Gre g C offey M e d 24-M ar-04 28-A pr-0 4 C los ed Action Item Registers Execution of Performance Management Align metrics to Function objectives and targets Align metrics to contract SLAs Define KPIs, performance targets and contractual consequences Apply scorecards and dashboards to report KPIs at different levels Use Action Item Register to track and escalate issue resolution Apply other tools to manage overall KPI List and supplier commitments Report supplier performance based on strata frequency requirements Manage ongoing issue identification and resolution Provide performance inputs to Supplier Reviews Resolve performance issues Provide rewards/incentives to suppliers exceeding performance targets Penalize and/or eliminate underperforming suppliers Function Function Supplier Owner Survey rating score Weekly system utilization Percent of system uptime Definition SourceKPI SurveyUser satisfaction Oracle monitorCapacity Utilization System logUptime Supplier Evaluation Scorecard Category Manager <Name>, GS Grade Account Manager <Name>, Supplier Good Completion Date Fair Poor Fill Rate % >=92 94-92 <=94 95.3 97.0 97.0 97.0 96.4 93.0 99.0 99.0 94.7 96.4 Monthly Turnover Rate % <=5 5-10 >=10 8.0 4.0 4.0 5.0 5.3 4.0 4.0 4.0 4.0 4.0 Preventable Turnover Rate % <=5 5-10 >=10 7.0 4.0 4.0 6.0 5.0 2.0 2.0 2.0 2.0 2.0 Account Management Account Management Quality Rating 1-3 3 2 1 3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 Invoice Timeliness Days late <=0 0-5 >=5 2.7 2.0 2.0 2.0 2.2 2.0 2.0 2.0 2.0 2.0 Invoice Accuracy % Variance of Total Bill <=0 0-2 >=2 0.7 1.0 1.0 1.0 0.9 2.0 1.0 1.0 2.0 1.5 Reporting Timeliness Days late <=0 0-5 >=5 0.7 1.0 1.0 1.7 0.9 2.0 2.0 2.0 2.0 2.0 Reporting Accuracy Reporting Errors <=0 0-3 >=3 1.7 0.0 0.0 3.3 0.6 2.3 2.0 2.0 2.0 2.1 On-site Management Quality Score 1-5 >=3.5 2-3.5 <=2 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Temporary Associate Quality Score 1-5 >=3.5 2-3.5 <=2 4.0 4.0 4.0 4.0 4.0 2.0 2.0 2.0 2.0 2.0 Update Meeting Quality Rating 1-3 3 2 1 Improvement Feedback Quality Rating 1-3 3 2 1 3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 <Name> <Name> <Name> Omaha Q1 Q2 Q3 Annual Average Q2 Q4 <Name>Company Functional Managers Supplier On-Site Managers Representatives Base Evaluation Metrics Survey Results QuarterlyMetrics Reporting and Invoicing Quarterly Reviews Q3 Comments / Action Items Metric Units Good Fair (between range) Poor Annual Average Fort Worth Q1 Definition Meets or exceeds requirements Nearly meets requirements, improvement needed within one month Fails to meet requirements Annual Scorecard By Quarter and Location Evaluation Category MonthlyMetrics Evaluation Criteria Q4 Metrics Tools Ongoing Measurement Outcomes Scorecards & Dashboards Incentives / Rewards Penalties Elimination Incentives / Rewards Penalties Elimination
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 23 Components of Supplier Development Supplier Development Needs Definition Supplier Development Supplier Development Program Definition Ongoing Supplier Development Supplier Development goals and objectives Supplier Development benefits Supplier Development challenges and needs Supplier Development Program objectives Supplier Development Program components and process definition Supplier Development Program implementation techniques Supplier Development team roles and responsibilities Supplier Development stratification impact
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 24 Supplier Development challenges and needs Development NeedsSupplier Relationship Challenges Continuous Improvement • Corporate/Functional objectives require year-on-year cost and/or service level improvements • Competition drives need to identify and implement best practices • Ineffective processes and systems in relationship drive increased costs and reduce performance Examples Capability Gap Closure • Supplier does not offer the services and/or products that Agilent needs • Supplier does not have the global capabilities to meet Agilent objectives • Supplier has capabilities that require further development to meet Agilent requirements • HR service provider lacked the employee services functionality required • TBD Value Creation • Few contracts encourage suppliers to identify opportunities to add value to Agilent • Lack of process to identify new value creation ideas • Lack of incentives for suppliers to identify new opportunities • Logistics Function sought creative approaches for additional cost savings
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 25 Benefits of implementing SRM Increased supplier performance visibility and accountability Aligned Corporate, Functional, and Supplier objectives Streamlined governance activities with a “Single Agilent Face” to suppliers Stratified supply base and greater visibility into supply relationship priorities and criticality Immediate Impacts of SRM Year-on-year cost-reductions and continuous performance improvement Supplier agreements support business performance and extract maximum supplier value Realization of internal efficiencies and reduction in supply management costs Stronger and more strategic supplier relationships with reduced supply costs and risks Long-Term Benefits of SRM
HTESCM, Shanghai, 21-22 March 2006 Agilent Technologies Page 26 Presentation Part I : Introduction to Agilent Technologies Part II : SRM in Agilent • Business Needs for a common SRM Model • SRM Components – Stratification – Governance – Performance Measurement – Supplier Development • Benefits of SRM program Q&A Session
Group/Presentation Title Agilent Restricted Month ##, 200XPage 27 Questions and Answers My Contact Details : Email : peter_woon@agilent.com Telnet : 215-8323 DID : +65 6215 8323 Winning ThroughWinning Through InnovationInnovation

More Related Content

PDF
Maximizing Use of Your Supplier Scorecard - OMTEC 2018
byApril Bright
 
PPTX
Drive Efficiency and Insights by Turning Quality Data into an Asset
byBrieLucia2
 
PPTX
Turning Quality Data into a Strategic Asset_Slides.pptx
byNicole Connell
 
PPTX
FDA Requirements for Supplier Management: A Primer from EduQuest
byEduQuest, Inc.
 
PPTX
Supplier Approval And Assessment
byDavid Warren, CPIM, CSCP
 
PPT
Companywide Assesment Of Quality
byHenmaidi Alfian
 
PDF
ASC Benchmarking - R Bays
byRichard Bays JD, MBA, RN, CPHQ
 
PDF
Adopting the Right Software Test Maturity Assessment Model
byCognizant
 
Maximizing Use of Your Supplier Scorecard - OMTEC 2018
byApril Bright
 
Drive Efficiency and Insights by Turning Quality Data into an Asset
byBrieLucia2
 
Turning Quality Data into a Strategic Asset_Slides.pptx
byNicole Connell
 
FDA Requirements for Supplier Management: A Primer from EduQuest
byEduQuest, Inc.
 
Supplier Approval And Assessment
byDavid Warren, CPIM, CSCP
 
Companywide Assesment Of Quality
byHenmaidi Alfian
 
ASC Benchmarking - R Bays
byRichard Bays JD, MBA, RN, CPHQ
 
Adopting the Right Software Test Maturity Assessment Model
byCognizant
 

What's hot

PDF
Models & Trends in REMS Program Success
byBest Practices
 
PDF
Supplier evaluation criteria
byArt Acosta
 
PDF
Qualty Competence in Outsourced Formulations Labs - Making the Grade
byQuality & Regulatory Network LLC
 
PDF
EFFECTS OF SUPPLIER EFFECTIVENESS ON ORGANIZATION PERFORMANCE AT KENYA SEED C...
bypaperpublications3
 
PDF
Benchmarking | Arrelic Insights
byArrelic
 
DOC
Benchmarking
byM Loganathan
 
PPTX
Research and development
byIndrajeet Kumar
 
PDF
Benchmarking Business Excellence
byManohar Tatwawadi
 
PPTX
Outsourcing In Clinical Trials
bypeter_benton
 
PDF
Roland berger: fight_or_flight_shortversion_20101025
byÓscar Miranda
 
PDF
MedAccred Welcome Pack V13 160920
byAdrien Boespflug
 
PDF
Automated HACCP can Improve Safety
byQuality & Regulatory Network LLC
 
DOCX
Case study haad operating model improvement model
bySandeep Sharma IIMK Smart City,IoT,Bigdata,Cloud,BI,DW
 
PPTX
Transforming operations
byAtiq Rehman, MD, MBA
 
PPTX
Benchmarking
byRavi Vaishnav
 
PDF
What Is It? Product Development vs. Product Management
byApril Bright
 
PPTX
Onicra Vendor Rating
byvikasbayyarapu
 
PPTX
Supplier Assessment and Performance Measurement
byAsia Master Training آسيا ماسترز للتدريب والتطوير
 
PDF
Developing High-Impact Communication Forms to Brief Senior Leaders: Optimizin...
byBest Practices
 
PPT
Benchmarking
bymubarak2009
 
Models & Trends in REMS Program Success
byBest Practices
 
Supplier evaluation criteria
byArt Acosta
 
Qualty Competence in Outsourced Formulations Labs - Making the Grade
byQuality & Regulatory Network LLC
 
EFFECTS OF SUPPLIER EFFECTIVENESS ON ORGANIZATION PERFORMANCE AT KENYA SEED C...
bypaperpublications3
 
Benchmarking | Arrelic Insights
byArrelic
 
Benchmarking
byM Loganathan
 
Research and development
byIndrajeet Kumar
 
Benchmarking Business Excellence
byManohar Tatwawadi
 
Outsourcing In Clinical Trials
bypeter_benton
 
Roland berger: fight_or_flight_shortversion_20101025
byÓscar Miranda
 
MedAccred Welcome Pack V13 160920
byAdrien Boespflug
 
Automated HACCP can Improve Safety
byQuality & Regulatory Network LLC
 
Case study haad operating model improvement model
bySandeep Sharma IIMK Smart City,IoT,Bigdata,Cloud,BI,DW
 
Transforming operations
byAtiq Rehman, MD, MBA
 
Benchmarking
byRavi Vaishnav
 
What Is It? Product Development vs. Product Management
byApril Bright
 
Onicra Vendor Rating
byvikasbayyarapu
 
Supplier Assessment and Performance Measurement
byAsia Master Training آسيا ماسترز للتدريب والتطوير
 
Developing High-Impact Communication Forms to Brief Senior Leaders: Optimizin...
byBest Practices
 
Benchmarking
bymubarak2009
 

Viewers also liked

PPTX
10 ways B2B market research will make your business an international company
byB2B International
 
PPT
B2B Social Media Strategy - The Caterpillar Journey @kevingespinosa
byKevin Espinosa
 
PPT
eBay Presentation
bykyla128
 
PPTX
Television brands & supply chain
bySmit Pipalia
 
PPT
ebay marketing
byAnil Kumar
 
PPTX
Powerpoint Presentation on eBay.com
bymyclass08
 
PPTX
Samsung Presentation
byulugbek55
 
10 ways B2B market research will make your business an international company
byB2B International
 
B2B Social Media Strategy - The Caterpillar Journey @kevingespinosa
byKevin Espinosa
 
eBay Presentation
bykyla128
 
Television brands & supply chain
bySmit Pipalia
 
ebay marketing
byAnil Kumar
 
Powerpoint Presentation on eBay.com
bymyclass08
 
Samsung Presentation
byulugbek55
 

Similar to HIgh Tech Electronics Logistics and Supply Chain Management Forum, Shanghai 2006

PPT
Supplier Relationship Management Program
byPeter Woon
 
PPTX
Supplier Relationship Management
byDevendra Singh Rathod
 
PDF
Building The Case For Supplier Relationship Management
bySource One Management Services
 
PDF
Supplier Relationship and Value Management The five programme killers, and ho...
byTejari
 
PPT
Martin Kunz, VP Global Sourcing & CPO at Ahlstrom Corporation - Supplier rela...
byGlobal Business Events
 
PPT
Srm Presentation
byMuhammed Akgun
 
PDF
Pwc supplier-relationship-management
byKROTOASA FOUNDATION
 
PPTX
DSO 308 Supplier Relationship Management systems.pptx
byMartin Owiny
 
PPTX
Ch.2 - Supplier Relationship Management.pptx
bydrsamarSabra
 
PDF
The Strategic Role of Supplier Relationship and Risk Management 24-06-25.pdf
byjvinay0898
 
PDF
Why is Supplier Relationship Management Important in Supply Chain.pdf
byMr. Business Magazine
 
PDF
The Hidden Asset - Effective SRM
byBravoSolution
 
PDF
Bullwhip and Supplier Relationship Management
byDeepak Ramawat
 
PDF
Supplier Relationship Management (SRM) Research 2012-2013
bysalleijn
 
PPTX
The Big Picture - Strategy Overview
bySRM Consultants
 
PDF
Supplier Relationship Management
byMichelle Lombard
 
PDF
Hicx briefing (nov16)
byGrant Watling
 
PDF
Supplier relationship management srm research 2013
bytdolder
 
PDF
Oracle SLM : What's New in Supplier Onboarding through Oracle.
byAbhilash K
 
PDF
Pharma Integrates 2013 - Beyond Account Management
byChristopher Watt
 
Supplier Relationship Management Program
byPeter Woon
 
Supplier Relationship Management
byDevendra Singh Rathod
 
Building The Case For Supplier Relationship Management
bySource One Management Services
 
Supplier Relationship and Value Management The five programme killers, and ho...
byTejari
 
Martin Kunz, VP Global Sourcing & CPO at Ahlstrom Corporation - Supplier rela...
byGlobal Business Events
 
Srm Presentation
byMuhammed Akgun
 
Pwc supplier-relationship-management
byKROTOASA FOUNDATION
 
DSO 308 Supplier Relationship Management systems.pptx
byMartin Owiny
 
Ch.2 - Supplier Relationship Management.pptx
bydrsamarSabra
 
The Strategic Role of Supplier Relationship and Risk Management 24-06-25.pdf
byjvinay0898
 
Why is Supplier Relationship Management Important in Supply Chain.pdf
byMr. Business Magazine
 
The Hidden Asset - Effective SRM
byBravoSolution
 
Bullwhip and Supplier Relationship Management
byDeepak Ramawat
 
Supplier Relationship Management (SRM) Research 2012-2013
bysalleijn
 
The Big Picture - Strategy Overview
bySRM Consultants
 
Supplier Relationship Management
byMichelle Lombard
 
Hicx briefing (nov16)
byGrant Watling
 
Supplier relationship management srm research 2013
bytdolder
 
Oracle SLM : What's New in Supplier Onboarding through Oracle.
byAbhilash K
 
Pharma Integrates 2013 - Beyond Account Management
byChristopher Watt
 

More from Peter Woon

PDF
Healthcare Supply Chain Management Congress 2013_PW
byPeter Woon
 
PDF
Transforming Procurement 2012 _Peter v2 0
byPeter Woon
 
PDF
S&PCon_ME_final
byPeter Woon
 
PDF
The New Age of Procurement and Supply ... CIPS Event
byPeter Woon
 
PDF
Linking Contracts to Money
byPeter Woon
 
PPT
Managing Services Spend ...
byPeter Woon
 
Healthcare Supply Chain Management Congress 2013_PW
byPeter Woon
 
Transforming Procurement 2012 _Peter v2 0
byPeter Woon
 
S&PCon_ME_final
byPeter Woon
 
The New Age of Procurement and Supply ... CIPS Event
byPeter Woon
 
Linking Contracts to Money
byPeter Woon
 
Managing Services Spend ...
byPeter Woon
 

Recently uploaded

PDF
Top 11 Guide on Buying Telegram Accounts in 2025 .pdf
byusaallsell
 
DOCX
7 Best Place To Buy Verified PayPal Accounts in USA.docx
bygetsmmpro getsmmpro.com
 
PDF
5 Easiest Ways to Buy Snapchat Accounts in the US.pdf
byGoogle Business Site is usaallhub
 
PDF
How to Buy Verified Cash App Account.pdf
bymarketing
 
PDF
Trusted Platforms For Buying Verified OnlyFans Accounts in 2026.pdf
bysy33nn1pvm0ykdle9x4r
 
PDF
Top 7 SItes to Buy Verified Cash App Accounts for Online ....pdf
by4b6fi2jol3skajahxend
 
PDF
GLIMPSE OF 2025 -- TECH EHS Solution | 18 Years of EHS Experties
byTECH EHS Solution
 
PDF
Shipping Company in Bangalore - Easyway 2025Logistics_.pdf
byEasyway Logistics
 
DOCX
The Ultimate Guide to Bulk Purchasing Old Gmail Accounts.docx
byBuy Verified Cash App Accounts
 
PDF
Dimi Design Intelligence Parts V and VI.pdf
byBrij Consulting, LLC
 
PDF
Top 10 Sites To Buy Verified Binance Accounts.pdf
byndsfcm3nubx18jc4s6f4
 
PPTX
Crisis-Management-Plan-Apple-final case study.pptx
byBudi Septiawan
 
PDF
MCB-Code-of-Conduct Mansehra postal service operation management
bytanolihaseeb21
 
PDF
Best 12 Ways to Buy Verified Chime Bank Accounts in 2025.pdf
by4b6fi2jol3skajahxend
 
PDF
How to Buy LinkedIn Followers and Connections.pdf
bysy33nn1pvm0ykdle9x4r
 
PDF
5 sites To Buy Facebook Accounts Safely_ 2025 Guide..pdf
bysy33nn1pvm0ykdle9x4r
 
PDF
Buy TikTok Shop accounts & Twitter accounts in 2026..pdf
bygetsmmpro getsmmpro
 
PDF
How to purchase a safely verified Chime bank account ....pdf
byndsfcm3nubx18jc4s6f4
 
PDF
David Slone Denver - President Of Lead 2 Serve
byDavid Slone Denver
 
PDF
Comments on Dimi Design Intelligence Addendum, All Parts.pdf
byBrij Consulting, LLC
 
Top 11 Guide on Buying Telegram Accounts in 2025 .pdf
byusaallsell
 
7 Best Place To Buy Verified PayPal Accounts in USA.docx
bygetsmmpro getsmmpro.com
 
5 Easiest Ways to Buy Snapchat Accounts in the US.pdf
byGoogle Business Site is usaallhub
 
How to Buy Verified Cash App Account.pdf
bymarketing
 
Trusted Platforms For Buying Verified OnlyFans Accounts in 2026.pdf
bysy33nn1pvm0ykdle9x4r
 
Top 7 SItes to Buy Verified Cash App Accounts for Online ....pdf
by4b6fi2jol3skajahxend
 
GLIMPSE OF 2025 -- TECH EHS Solution | 18 Years of EHS Experties
byTECH EHS Solution
 
Shipping Company in Bangalore - Easyway 2025Logistics_.pdf
byEasyway Logistics
 
The Ultimate Guide to Bulk Purchasing Old Gmail Accounts.docx
byBuy Verified Cash App Accounts
 
Dimi Design Intelligence Parts V and VI.pdf
byBrij Consulting, LLC
 
Top 10 Sites To Buy Verified Binance Accounts.pdf
byndsfcm3nubx18jc4s6f4
 
Crisis-Management-Plan-Apple-final case study.pptx
byBudi Septiawan
 
MCB-Code-of-Conduct Mansehra postal service operation management
bytanolihaseeb21
 
Best 12 Ways to Buy Verified Chime Bank Accounts in 2025.pdf
by4b6fi2jol3skajahxend
 
How to Buy LinkedIn Followers and Connections.pdf
bysy33nn1pvm0ykdle9x4r
 
5 sites To Buy Facebook Accounts Safely_ 2025 Guide..pdf
bysy33nn1pvm0ykdle9x4r
 
Buy TikTok Shop accounts & Twitter accounts in 2026..pdf
bygetsmmpro getsmmpro
 
How to purchase a safely verified Chime bank account ....pdf
byndsfcm3nubx18jc4s6f4
 
David Slone Denver - President Of Lead 2 Serve
byDavid Slone Denver
 
Comments on Dimi Design Intelligence Addendum, All Parts.pdf
byBrij Consulting, LLC
 

HIgh Tech Electronics Logistics and Supply Chain Management Forum, Shanghai 2006

  • 1.
    Group/Presentation Title Agilent Restricted Month##, 200XPage 1 High-Tech and Electronics Logistics and Supply Chain Management Conference Peter Woon Director, Global Sourcing Agilent Technologies HTESCM, Shanghai, 21-22 March, 2006 “Winning through Innovation”
  • 2.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 2 Presentation Part I : Introduction to Agilent Technologies Part II : SRM in Agilent • Business Needs for a common SRM Model • SRM Components – Stratification – Governance – Performance Measurement – Supplier Development • Benefits of implementing SRM program Q&A Session
  • 3.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 3 Agilent’s Focus Communications Electronics Life Sciences and Chemical Analysis Our goal is to strengthen Agilent’s position as the world’s premier measurement company Agilent provides core electronic and bio- analytical measurement tools to advance the electronics, communications, life sciences, research, environmental, and petrochemical industries Agilent’s Overview
  • 4.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 4 Agilent Around the World • Customers in more than 110 countries • More than 60% of revenue generated outside U.S. • Global manufacturing and R&D Agilent Facts $ 5.1 billion (exclude SPG)Net revenue (FY05) Employees 21,000 employees Headquarters Palo Alto, California
  • 5.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 5 Bio-Analytical Measurement Electronic Measurement Semiconductor Test Solutions $1.42B$3.27B $0.45B Agilent Businesses The world’s premier measurement company Total FY05 GAAP Revenue of $5.1 billion excludes revenues from Agilent’s Semiconductor Products Group. Shared Infrastructure Agilent Laboratories Global Infrastructural Organization Global functional support teams Sourcing, Finance, Information Technology, Human Resources, Workplace Services, Legal, Trade and Tax etc
  • 6.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 6 Agilent FY05 Revenue by End Markets Chemical Analysis Life Sciences Wireless Wireline General purpose test Semiconductor Test This represents GAAP figures and excludes the revenues of Agilent’s Semiconductor Products Group. 12% 34% 6% 23% 9% 16%
  • 7.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 7 Agilent Around the World • Customers in more than 110 countries • More than 60% of revenue generated outside U.S. • Global manufacturing and R&D
  • 8.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 8 FY05 Net Revenue by Geography 38% 39% 23% Total GAAP revenue of $5.1 billion excludes the revenues of Agilent’s Semiconductor Products Group. Americas $1.96B Asia Pacific $1.98B Europe $1.20B 100%=$5.14B
  • 9.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 9 Agilent’s Industry-Leading Customers Astra Zeneca Aventis BASF AG Bayer AG Boehringer Ingelheim Dana-Farber Cancer Institute DuPont Dow Chemical Exxon-Mobil Eli Lilly GlaxoSmithKline Merck National Cancer Institute Nestle Novartis Pfizer U.S. Army, FDA, EPA, NIH Alcatel Cisco Ericsson Flextronics Fujitsu Huawei IBM LG Lockheed Lucent Motorola NEC Nokia NTT Orange Samsung SBC Singtel Sprint Verizon Life Sciences and Chemical AnalysisElectronic Measurement
  • 10.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 10 Presentation Part I : Introduction to Agilent Technologies Part II : SRM in Agilent • Business Needs for a common SRM Model • SRM Components – Stratification – Governance – Performance Measurement – Supplier Development • Benefits of implementing SRM Program Q&A Session
  • 11.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 11 Business need for a common SRM Model • Agilent has realized significant savings and other benefits from outsourcing services previously delivered in-house • Increased reliance on external providers has made effective Supplier Relationship Management (SRM) critical • However, Agilent has lacked a common model and results-oriented approach for optimizing supplier relationship management − Each function had defined its own approaches, tools, and processes for SRM − Agilent had not fully transitioned from people management to SLA management − Roles and responsibilities for SRM had not been clearly defined, reducing effectiveness and proliferating “vendor managers” • As a result, there were clear business need to design and implement a common SRM model to enable leveraging a COMMON process and methodology across the supply base.
  • 12.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 12 Supplier Relationship Management (SRM) provides a framework for managing supplier interactions throughout the entire supplier relationship lifecycle The Agilent Supplier Relationship Management (SRM) Model: Supplier Development Performance Management SRM Governance Supplier Stratification SRM Definition & Best Practices SRM Systems • Supplier Stratification Definition • Supplier Stratification Expectations • Supplier Stratification Execution • Capability and Functionality Needs Analysis • SRM Model Definition • Teams, Roles and Competencies Definition • Ongoing Governance Management • SRM Adoption Management • Performance Management Definition • Performance Management Tool Development • Ongoing Supplier Performance Management • Supplier Development Needs Definition • Supplier Development Program Definition • Ongoing Supplier Development • Systems Selection and Deployment • Best Practices
  • 13.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 13 Components of Supplier Stratification Supplier Stratification Supplier Stratification Definition Supplier Stratification Expectations Supplier Stratification Execution Definition of supplier tiers Characteristics of supplier tiers Expectations by supplier tier Supply Base guidelines Stratification criteria Stratification process Stratification tools
  • 14.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 14 Supplier stratification process One of the key activities in the Supplier Relationship Management (SRM) effort was to stratify suppliers in the areas like HR, WPS, IT and Marketing etc. Supplier Stratification was required to effectively prioritized supplier relationship management focus on strategic and core suppliers The stratification exercise also revealed that approx 30% of the spend $$$ were with the “tail” of ~4,400 basic suppliers across the areas Agilent has an opportunity to realize savings in the short term by rationalizing suppliers in specific target categories where significant savings opportunities exist
  • 15.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 15 IT, WPS, HR, and Marketing, all categories where SRM is underway, each have a long supplier “tail” The “tail”: • Average of 30+% of spend • ~4,400 suppliers (98%) Spend # Suppliers IT WPS HR Marketing 60% 14 800+ 80% 29 55% 16 80% 25 2,300+ 650 800+ Supplier tail in each function represents opportunity for rationalizing suppliers in specific sub-categories where significant savings are possible
  • 16.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 16 Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Transactional Suppliers Enterprise Partners Strategic Suppliers Core Suppliers Strategic Suppliers Core Suppliers Basic Suppliers Stratification Tiers and Characteristics Strategic Suppliers: Critical to operations of functional group(s) and to long-term functional goals Require significant functional resources and investment Core Suppliers: Important to operations of functional group(s) and to long-term functional goals Potential incremental value from developing ongoing relationship Difficult to replace Basic Suppliers: Short-term, transactional relationships Minimal investment Purely cost-driven performance management Do Not Do Business With Strategic Company-Wide Partners: Qualified as Strategic Supplier Multi-dimensional relationship (multi-function, buy-sell, etc.) Typically require high levels of cross-functional resources and investment Do Not Do Business With: List of suppliers with whom Agilent has elected not to do business 80% Financial Value 20% Financial Value Strategic Company- Wide Partners The first three supplier tiers are determined at the Function level, allowing for flexibility. The highest tier is determined across Functions, providing a company-wide perspective.
  • 17.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 17 Relationship Model
  • 18.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 18 Components of SRM Governance SRM Governance Teams, Roles, and Competencies Definition Ongoing Governance Management SRM Adoption Management SRM Team structure by strata SRM roles and responsibilities SRM competencies definition SRM competency assessment and development process SRM review structure and processes Day-to-day supplier management processes Escalation process Process and tools for measurement of SRM adoption and effectiveness Ongoing process to incorporate feedback
  • 19.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 19 Teams responsible for managing supplier relationships the team objectives Operations Management Team Executive Management Team Assess supplier operational performance Assess financial performance Analyze and address escalation issues Assess supplier operational performance Develop suppliers to resolve capability gaps Discuss new capabilities Partner with program managers and content experts Assess supplier financial performance Manage supplier contracts and service level agreements Manage new supplier services and change order requirements Business Office SRM Lead Lead internal SRM team collaboration and Assist with interactions with suppliers and business partners Ongoing Operational Activities SupplierRelationshipManagement(SRM)Operations
  • 20.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 20 What are the structure and roles of current SRM teams? Operations Management Team Executive Management Team Business Office SRM Lead Ongoing Operational Activities SupplierRelationshipManagement(SRM)Operations Supplier Personnel Agilent Personnel Ops Mgmt. Lead Financial Performance Mgmt. Contract /Sourcing Management Relationship Risk Mgmt. Communications Management Legal & Audit Support Client Relationship Mgmt. Lead Sales Relationship Core Support Delivery Management Project Management Transition Management Performance Management Supplier Development Mgmt. Customer Satisfaction Mgmt. Escalation Management Other Supplier Team Members Other Supplier Leads Agilent Executive Sponsor Other Executive(s) Client Relationship Sponsor SRM Lead
  • 21.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 21 Components of Performance Management Performance Management Definition Performance Management Performance Management Tool Development Ongoing Performance Management Performance Management components and process definition Performance Management team roles and responsibilities Performance Management goals and objectives Performance Management review structure and processes Day-to-day metric tracking and supplier communication Escalation process and management of supplier accountability Supplier objective and KPI alignment with Functional goals and targets SLA visibility and management Performance tracking tools: • Scorecards • Supplier Metrics Registers • Action Items • Supplier Surveys
  • 22.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 22 KPI Deinfition Example Delivery System Owner Average spend per mile in period $0.33 / flight mile in 1Q04 BTI feed Travel SRM Mngr rental $ daily rate over period $74 / day in May 03 Hertz download Travel SRM Mngr Online Booking Tool Operational Savings Net $ savings due to online booking $102,000 saved in 1Q04 Finance feed Travel SRM Mngr Average Cost per Hotel night booked Average cost over all hotel nights book through Travel $123.24 / night Finance feed Travel SRM Mngr BTI Agency Costs $389,000 in 1Q04 BTI feed BTI Average Domestic Ticket Price Average price over period $469 Finance feed BTI Price Average price over period $824 Finance feed BTI Business vs. First class metric Ratio of first class to business tickets issued during period 0.21 in FY02 BTI feed Travel SRM Mngr Average spend per mile by airline Average spend by airline over period $0.31 / flight mile on AirAgilent Finance feed Travel SRM Mngr Function KPI Catalog KPI Deinfition Example Delivery System Owner Average spend per mile in period $0.33 / flight mile in 1Q04 BTI feed Travel SRM Mngr rental $ daily rate over period $74 / day in May 03 Hertz download Travel SRM Mngr Online Booking Tool Operational Savings Net $ savings due to online booking $102,000 saved in 1Q04 Finance feed Travel SRM Mngr Average Cost per Hotel night booked Average cost over all hotel nights book through Travel $123.24 / night Finance feed Travel SRM Mngr BTI Agency Costs $389,000 in 1Q04 BTI feed BTI Average Domestic Ticket Price Average price over period $469 Finance feed BTI Price Average price over period $824 Finance feed BTI Business vs. First class metric Ratio of first class to business tickets issued during period 0.21 in FY02 BTI feed Travel SRM Mngr Average spend per mile by airline Average spend by airline over period $0.31 / flight mile on AirAgilent Finance feed Travel SRM Mngr Function KPI CatalogFunction Supply KPI Catalog Re f # Action Ite m Ow ner Priority D ate Identified D ate D ue St atus N otes / C om m ents Gov-a-0 24 R eview over all co ntr act in dic ato r (yellow v s. red) on B. sco recard an d dashb oard D oug K nigh t / V innie E gizi Low 3-D ec -0 3 15-A pr-0 4 O pen 3/17: A gile nt content with curren t - will re vie w in April Gov-a-0 25 R e-evaluate weights on B . sc oreca rd D oug K nigh t / V innie E gizi Low 3-D ec -0 3 15-A pr-0 4 O pen HP reco m m endatio n provided - need a pproval from D oug . 3 /17: A gilent con tent w ith curren t - will rev iew in A pril Gov-a-0 30 A ss ess if TQ RD C E is be st approa ch to m e asuring c us tom er sa tisfac tion D oug K nigh t M e d 3-D ec -0 3 28-A pr-0 4 C los ed 3/17: A dditional q ue stio ns to be integrate d and pro vid ed to larger a udienc e. Gov-a-0 31 R eview and ag re e on on-g oing c ontent require m ents for G ove rn an ce m ateria ls (e.g., freq uenc y of tower “d eep div es”) D oug K nigh t / V innie E gizi / K im N utter M e d 13-Feb-04 15-A pr-0 4 C los ed new m eeting struc ture es tablis hed s pecific to conten t requirem ents . Gov-a-3 3 P rovid e m ore detailed defin ition o f what c onstitu tes a n IM A C S cott Cobe rn us M e d 17-M ar-04 23-A pr-0 4 Can celle d m erge d with item # gov-a-40 Gov-a-3 4 E valu ate pre-paym ent options an d provide A gile nt feedba ck. Tim K raem er M e d 17-M ar-04 24-M a r-04 C los ed 3/19: C IBC ad jus ted base line s eas onally. 4/2 : not easy - req uires a lot of ac cr ua ls an d deferrals. S o poss ible bu t want to avoid. Tim to fo rm ally com m u nicate to Vinnie/D oug. 4 /16: Tim m ade rec om m end ation to not do this. Gov-a-3 5 A ss ociated entities listin g/E x hibit 7 D ale H oppenrath M e d 3-M ar-04 31-M a r-04 C los ed 4/2: rec eived new ex hibit 7 / new s ite listin g Gov-a-3 6 A gree to process to a ttain brea ch ite m c losur e (i.e., s ig n-off th at co ntractual de liverable req’ts have be en m e t). V inc ent E gizi, D oug K nigh t M e d 24-M ar-04 30-A pr-0 4 O pen 4/16: m eetin g s che duled 4 /28/04. M ichelle pulling data Gov-a-3 7 A ss ess how to m ak e the CLM inventor y pipe line v isible Jo hn M elin M e d 24-M ar-04 30-A pr-0 4 O pen Gov-a-3 8 E xp lo re leve ra ge poin ts from A ltiris V inc ent E gizi M e d 24-M ar-04 29-M ay-0 4 O pen 4/2: onc e ass et m gt is stable HP w ill lo ok at this. Gov-a-3 9 R eprese nt break -fix as p ercentag e that hit on e d ay vs. the avera ge Jo hn M elin, Gre g C offey M e d 24-M ar-04 28-A pr-0 4 C los ed Action Item Registers Execution of Performance Management Align metrics to Function objectives and targets Align metrics to contract SLAs Define KPIs, performance targets and contractual consequences Apply scorecards and dashboards to report KPIs at different levels Use Action Item Register to track and escalate issue resolution Apply other tools to manage overall KPI List and supplier commitments Report supplier performance based on strata frequency requirements Manage ongoing issue identification and resolution Provide performance inputs to Supplier Reviews Resolve performance issues Provide rewards/incentives to suppliers exceeding performance targets Penalize and/or eliminate underperforming suppliers Function Function Supplier Owner Survey rating score Weekly system utilization Percent of system uptime Definition SourceKPI SurveyUser satisfaction Oracle monitorCapacity Utilization System logUptime Supplier Evaluation Scorecard Category Manager <Name>, GS Grade Account Manager <Name>, Supplier Good Completion Date Fair Poor Fill Rate % >=92 94-92 <=94 95.3 97.0 97.0 97.0 96.4 93.0 99.0 99.0 94.7 96.4 Monthly Turnover Rate % <=5 5-10 >=10 8.0 4.0 4.0 5.0 5.3 4.0 4.0 4.0 4.0 4.0 Preventable Turnover Rate % <=5 5-10 >=10 7.0 4.0 4.0 6.0 5.0 2.0 2.0 2.0 2.0 2.0 Account Management Account Management Quality Rating 1-3 3 2 1 3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 Invoice Timeliness Days late <=0 0-5 >=5 2.7 2.0 2.0 2.0 2.2 2.0 2.0 2.0 2.0 2.0 Invoice Accuracy % Variance of Total Bill <=0 0-2 >=2 0.7 1.0 1.0 1.0 0.9 2.0 1.0 1.0 2.0 1.5 Reporting Timeliness Days late <=0 0-5 >=5 0.7 1.0 1.0 1.7 0.9 2.0 2.0 2.0 2.0 2.0 Reporting Accuracy Reporting Errors <=0 0-3 >=3 1.7 0.0 0.0 3.3 0.6 2.3 2.0 2.0 2.0 2.1 On-site Management Quality Score 1-5 >=3.5 2-3.5 <=2 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 2.0 Temporary Associate Quality Score 1-5 >=3.5 2-3.5 <=2 4.0 4.0 4.0 4.0 4.0 2.0 2.0 2.0 2.0 2.0 Update Meeting Quality Rating 1-3 3 2 1 Improvement Feedback Quality Rating 1-3 3 2 1 3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 <Name> <Name> <Name> Omaha Q1 Q2 Q3 Annual Average Q2 Q4 <Name>Company Functional Managers Supplier On-Site Managers Representatives Base Evaluation Metrics Survey Results QuarterlyMetrics Reporting and Invoicing Quarterly Reviews Q3 Comments / Action Items Metric Units Good Fair (between range) Poor Annual Average Fort Worth Q1 Definition Meets or exceeds requirements Nearly meets requirements, improvement needed within one month Fails to meet requirements Annual Scorecard By Quarter and Location Evaluation Category MonthlyMetrics Evaluation Criteria Q4 Metrics Tools Ongoing Measurement Outcomes Scorecards & Dashboards Incentives / Rewards Penalties Elimination Incentives / Rewards Penalties Elimination
  • 23.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 23 Components of Supplier Development Supplier Development Needs Definition Supplier Development Supplier Development Program Definition Ongoing Supplier Development Supplier Development goals and objectives Supplier Development benefits Supplier Development challenges and needs Supplier Development Program objectives Supplier Development Program components and process definition Supplier Development Program implementation techniques Supplier Development team roles and responsibilities Supplier Development stratification impact
  • 24.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 24 Supplier Development challenges and needs Development NeedsSupplier Relationship Challenges Continuous Improvement • Corporate/Functional objectives require year-on-year cost and/or service level improvements • Competition drives need to identify and implement best practices • Ineffective processes and systems in relationship drive increased costs and reduce performance Examples Capability Gap Closure • Supplier does not offer the services and/or products that Agilent needs • Supplier does not have the global capabilities to meet Agilent objectives • Supplier has capabilities that require further development to meet Agilent requirements • HR service provider lacked the employee services functionality required • TBD Value Creation • Few contracts encourage suppliers to identify opportunities to add value to Agilent • Lack of process to identify new value creation ideas • Lack of incentives for suppliers to identify new opportunities • Logistics Function sought creative approaches for additional cost savings
  • 25.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 25 Benefits of implementing SRM Increased supplier performance visibility and accountability Aligned Corporate, Functional, and Supplier objectives Streamlined governance activities with a “Single Agilent Face” to suppliers Stratified supply base and greater visibility into supply relationship priorities and criticality Immediate Impacts of SRM Year-on-year cost-reductions and continuous performance improvement Supplier agreements support business performance and extract maximum supplier value Realization of internal efficiencies and reduction in supply management costs Stronger and more strategic supplier relationships with reduced supply costs and risks Long-Term Benefits of SRM
  • 26.
    HTESCM, Shanghai, 21-22March 2006 Agilent Technologies Page 26 Presentation Part I : Introduction to Agilent Technologies Part II : SRM in Agilent • Business Needs for a common SRM Model • SRM Components – Stratification – Governance – Performance Measurement – Supplier Development • Benefits of SRM program Q&A Session
  • 27.
    Group/Presentation Title Agilent Restricted Month##, 200XPage 27 Questions and Answers My Contact Details : Email : peter_woon@agilent.com Telnet : 215-8323 DID : +65 6215 8323 Winning ThroughWinning Through InnovationInnovation