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Supplier/Vendor Management
What is the Return on Investment (ROI)?
Presenters
Aaron Rudd
Vice President, Business &
Product Development, BROWZ
Derek Borgert
Vice President, CTO, BROWZ
Brett Armstrong
Vice President, Marketing,
BROWZ
Agenda
Why supplier/vendor management?
What is the organization impact?
What are the costs of doing it right?
What results can you expect?
Calculating ROI
Making a case for your program
Gain - Investment
Investment
Gain = expected losses – reduced losses
ROI =
Investment = Cost of a program
Cost of Incidents
National Safety Council
• $1,000,000 per death
• $29,000 per medically consulted injury
- Wage losses, medical expenses, admin
expenses, employer costs.
- Excludes indirect costs
Injury Facts® 2016 Edition
Fines and Penalties
Damages & Repair Costs
Lost Time
Litigation Costs and Civil Damages
Increased Insurance Costs
Indirect
Fines and Penalties
Damages & Repair Costs
Lost Time
Litigation Costs and Civil Damages
Increased Insurance Costs
Reputation damage
Overtime to offset production down time
Strained employee relations
Time to investigative time post-incident
Poor employee morale
Psychological impacts on affected employees
Future difficulty hiring new employees
Visit thecampbellinstitute.org/research
What do experts say?
Poll #1
Which of the following 5 steps are part of your current supplier
management program? (select all that apply)
• Prequalification
• Pre-job task and risk assessment
• Contractor training and orientation
• Monitoring of job
• Post-job evaluation
What results can I expect?
BROWZ contractors outperform
industry averages for key safety
metrics.
Building Blocks
of a Program
Building Team/Scope
What Information to Collect?
Health & Safety
Annual Accident
History
Injury & Illness Rates
Citations & Violations
Safety Programs &
Policies
Safety Manual Audits
Insurance & Risk
Certificates
Policy Types & Limits
Endorsements
AM Best Ratings
Certificate Holders
Supplier Demographics
Industry Codes
Licenses / Expirations
Quality Programs
Supplier Diversity
Ownership
Financial Stability
Bankruptcy
Liens
Judgements
Third Party Financial ratings
Industry Risk Comparison
Corporate Social
Responsibility
Sustainability
Waste Management
Child Labor
Anti-Corruption
Ethics
Poll #2
Which of the following are program elements in your supplier management program? (Select all
that apply)
• Health & Safety
• Insurance
• Legal
• Financial
• CSR/Sustainability
• Supplier Diversity
• Quality Systems
• Business Continuity
Program Set Up Technology
Implementation
CommunicationContractor Support
Data Review/Verification
Define your requirements.
“ Choose or create a
technology to track and
manage all the data.“
Contact each of your
contractors explaining your
requirements and asking
them to comply.
“
Have support personnel available to
assist each contractor to help them
achieve compliance.“
Verify and score compliance data
for accuracy, compliance and
completeness.“
Components of Prequalification
Gather contractor compliance data and
documents
Verification of contractor data through
document review and private and public
database sources.
Assessment of contractor data and
documents compared to client specific
requirements.
Data Maintenance through ongoing
notifications of deficiencies and expirations on
all time sensitive data.
Verify
AssessMaintain
Gather
Contractor
Compliance
Information
Post Prequalification Results
More than a 1-time
Event
Development resources
Diverse risk assessments
ERP integration
Monitor expiring data
And then there’s IT…
International capability
Security and disaster recovery
Real-time updates
Enterprise access
Gain - Investment
Investment
Gain = (expected losses – reduced losses)
1. Number of suppliers
2. Maturity of program
3. Technology infrastructure
4. Scope of implementation
Questions to ask…
www.BROWZ.com/roi
Upcoming Webinar
June 21 | 1 pm EDT
www.browz.com/webinar
Supplier & Vendor Prequalification
From the contractor’s perspective
A case study with
QUESTIONS
Calculate your ROI
www.BROWZ.com/roi
Contact us
www.BROWZ.com/en

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[Webinar] Contractor Management: What is the Return on Investment (ROI)?

  • 1. Supplier/Vendor Management What is the Return on Investment (ROI)?
  • 2. Presenters Aaron Rudd Vice President, Business & Product Development, BROWZ Derek Borgert Vice President, CTO, BROWZ Brett Armstrong Vice President, Marketing, BROWZ
  • 3. Agenda Why supplier/vendor management? What is the organization impact? What are the costs of doing it right? What results can you expect? Calculating ROI
  • 4. Making a case for your program
  • 5. Gain - Investment Investment Gain = expected losses – reduced losses ROI = Investment = Cost of a program
  • 6.
  • 7. Cost of Incidents National Safety Council • $1,000,000 per death • $29,000 per medically consulted injury - Wage losses, medical expenses, admin expenses, employer costs. - Excludes indirect costs Injury Facts® 2016 Edition
  • 8. Fines and Penalties Damages & Repair Costs Lost Time Litigation Costs and Civil Damages Increased Insurance Costs
  • 9. Indirect Fines and Penalties Damages & Repair Costs Lost Time Litigation Costs and Civil Damages Increased Insurance Costs Reputation damage Overtime to offset production down time Strained employee relations Time to investigative time post-incident Poor employee morale Psychological impacts on affected employees Future difficulty hiring new employees
  • 11. Poll #1 Which of the following 5 steps are part of your current supplier management program? (select all that apply) • Prequalification • Pre-job task and risk assessment • Contractor training and orientation • Monitoring of job • Post-job evaluation
  • 12.
  • 13. What results can I expect? BROWZ contractors outperform industry averages for key safety metrics.
  • 16. What Information to Collect? Health & Safety Annual Accident History Injury & Illness Rates Citations & Violations Safety Programs & Policies Safety Manual Audits Insurance & Risk Certificates Policy Types & Limits Endorsements AM Best Ratings Certificate Holders Supplier Demographics Industry Codes Licenses / Expirations Quality Programs Supplier Diversity Ownership Financial Stability Bankruptcy Liens Judgements Third Party Financial ratings Industry Risk Comparison Corporate Social Responsibility Sustainability Waste Management Child Labor Anti-Corruption Ethics
  • 17. Poll #2 Which of the following are program elements in your supplier management program? (Select all that apply) • Health & Safety • Insurance • Legal • Financial • CSR/Sustainability • Supplier Diversity • Quality Systems • Business Continuity
  • 18.
  • 19. Program Set Up Technology Implementation CommunicationContractor Support Data Review/Verification Define your requirements. “ Choose or create a technology to track and manage all the data.“ Contact each of your contractors explaining your requirements and asking them to comply. “ Have support personnel available to assist each contractor to help them achieve compliance.“ Verify and score compliance data for accuracy, compliance and completeness.“
  • 20. Components of Prequalification Gather contractor compliance data and documents Verification of contractor data through document review and private and public database sources. Assessment of contractor data and documents compared to client specific requirements. Data Maintenance through ongoing notifications of deficiencies and expirations on all time sensitive data. Verify AssessMaintain Gather Contractor Compliance Information
  • 22. More than a 1-time Event
  • 23. Development resources Diverse risk assessments ERP integration Monitor expiring data And then there’s IT… International capability Security and disaster recovery Real-time updates Enterprise access
  • 24. Gain - Investment Investment Gain = (expected losses – reduced losses) 1. Number of suppliers 2. Maturity of program 3. Technology infrastructure 4. Scope of implementation Questions to ask… www.BROWZ.com/roi
  • 25.
  • 26.
  • 27.
  • 28.
  • 29.
  • 30.
  • 31. Upcoming Webinar June 21 | 1 pm EDT www.browz.com/webinar Supplier & Vendor Prequalification From the contractor’s perspective A case study with