Supplier Performance Management V1 1

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The benefits and capabilities of Supplier Peformance Management through Business Process Automation framework

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  • This was a long tutorial, and sometimes we get the question, “why do we do this”. So I’ll start with a criminal. You may have heard of Slick Willie Sutton, the bank robber. It’s part of US lore that, when asked why he robbed banks, he replied “That’s where the money is”. Supply chains are where the money is in large companies, and is one of the biggest drivers of financial performance there is.
  • Executives do not have the information they need to ensure that all of the organization’s moving parts are functioning in support of key business goals Lack of visibility into operations hampers executives in: Identifying where and how processes do not sufficiently synchronize with corporate goals Identifying where and how waste and inefficiencies can be wrung out Proving compliance with government and industry-specific regulations Enforcing new corporate policies, and measuring their impact, is difficult without a clear view into how work is actually being done Inaccurate or insufficient data, and slow access to that data, impede effective governance and risk management Aligning operations with strategic business goals requires: Communicating executive directions into the daily workforce Focusing IT on business goals and delivering real value Understanding the impact of change on the organization
  • Executives do not have the information they need to ensure that all of the organization’s moving parts are functioning in support of key business goals Lack of visibility into operations hampers executives in: Identifying where and how processes do not sufficiently synchronize with corporate goals Identifying where and how waste and inefficiencies can be wrung out Proving compliance with government and industry-specific regulations Enforcing new corporate policies, and measuring their impact, is difficult without a clear view into how work is actually being done Inaccurate or insufficient data, and slow access to that data, impede effective governance and risk management Aligning operations with strategic business goals requires: Communicating executive directions into the daily workforce Focusing IT on business goals and delivering real value Understanding the impact of change on the organization
  • Line of Business managers must be able to provide sufficient data and reporting to help executives meet their goals. Managers lack the real-time information they need to optimize their departmental operations and provide validation up the food chain. They can’t do effective skills management and workload balancing Lack of sufficient standardization of process and enforcement of escalation policies makes exception resolution cumbersome. When a crisis hits – around service levels, quality issues, regulatory violation, or the like – slow response times, slow access to process history and data, and questions about data validity impede fast, effective response. Managers need visibility into daily operations and work queues to: Predict workloads in the future for effective planning Optimize resources to complete work faster and more efficiently Communicate effectively with other departments Ensure compliance with process rules and regulations Prove value to executive leadership
  • Line of Business managers must be able to provide sufficient data and reporting to help executives meet their goals. Managers lack the real-time information they need to optimize their departmental operations and provide validation up the food chain. They can’t do effective skills management and workload balancing Lack of sufficient standardization of process and enforcement of escalation policies makes exception resolution cumbersome. When a crisis hits – around service levels, quality issues, regulatory violation, or the like – slow response times, slow access to process history and data, and questions about data validity impede fast, effective response. Managers need visibility into daily operations and work queues to: Predict workloads in the future for effective planning Optimize resources to complete work faster and more efficiently Communicate effectively with other departments Ensure compliance with process rules and regulations Prove value to executive leadership
  • IT must: Deliver new services Meet SLAs Manage existing infrastructure Do all with fewer resources Fundamental roadblocks include: Collaborating with business effectively to turn requirements into functional applications Delivering new business applications on-time (or at all) Accommodating changes to process applications without interrupting normal business All of the above can make it hard for IT to prove value to executive leadership
  • Appian is uniquely capable of delivering the fastest process design & collaboration, the fastest process application deployment, and the fastest iterative cycles of process improvement in the BPM industry. We do this through a BPM software suite that is the most powerful, yet the easiest to use, on the market This combination of functionality and simplicity empowers business users to create and optimize their own process application solutions, while also enabling IT to extend and integrate those solutions Appian quickly creates a work experience for end users that is highly personalized and richly collaborative – providing the right data, in the right context, at the right time for employees to do their jobs more effectively Our real-time process architecture and unlimited reporting options give managers and executives a new level of insight into how their department or organization actually performs, and enable better strategic decision-making
  • Supplier Performance Management V1 1

    1. 1. Supply Chain Management <ul><li>Inbound Shipment Tracking & Supplier Performance Management Solutions </li></ul><ul><li>February 2010 </li></ul>
    2. 2. Agenda <ul><li>Overview </li></ul><ul><li>Market Analysis </li></ul><ul><li>Supplier Performance Management Solution </li></ul><ul><li>Competition </li></ul><ul><li>Solution Profiles </li></ul><ul><li>Appendix </li></ul><ul><ul><ul><ul><li>Common Questions </li></ul></ul></ul></ul>
    3. 3. A Bit of History: 1930-1950 <ul><li>Bank Robber “Slick Willie” Sutton </li></ul><ul><li>When asked why he robbed banks, Willie simply replied </li></ul><ul><li>&quot;Because that's where the money is.&quot; </li></ul>Overview
    4. 4. Overview Supply Chain is ‘Where the Money is’ <ul><li>The Supply Chain generally accounts for between 60% and 90% of all company costs! </li></ul><ul><li>A 2% improvement in process efficiency for Supply Chain processes has 3000% - 5000% the impact of a 2% improvement in efficiency for IT, HR, Finance or Sales </li></ul><ul><li>Most Process Methodologies or techniques had their origin primarily in Supply Chain Management! </li></ul><ul><li>SCOR Benchmarking research </li></ul>
    5. 5. Market Analysis <ul><ul><li>Market Research – Aberdeen Group </li></ul></ul><ul><ul><li>Only 33% of respondents have Supply Chain visibility software! </li></ul></ul><ul><ul><li>79% of large companies say the lack of process visibility is their top concern! </li></ul></ul><ul><ul><li>Focus of Best-in-Class firms </li></ul></ul><ul><ul><ul><li>On-the-fly decision making </li></ul></ul></ul><ul><ul><ul><li>Near real-time visibility </li></ul></ul></ul><ul><ul><ul><li>Optimization of execution </li></ul></ul></ul><ul><ul><li>Recommendations </li></ul></ul><ul><ul><ul><li>Acquire Supply Chain visibility to the item/inventory/landed cost level </li></ul></ul></ul><ul><ul><ul><li>Employ near real-time dynamic optimization to enhance cost and service </li></ul></ul></ul><ul><ul><ul><li>Enhance collaboration with internal groups and external customers and partners </li></ul></ul></ul><ul><ul><ul><li>Scale business-to-business collaboration </li></ul></ul></ul>
    6. 6. <ul><li>Industry Trends – </li></ul><ul><li>Visibility and BI (Business Intelligence) in the Supply Chain </li></ul><ul><ul><li>Identify and measure KPI’s and service levels </li></ul></ul><ul><ul><li>Improve relationship and performance of both partners and internal operations </li></ul></ul><ul><ul><li>Partner integration </li></ul></ul><ul><ul><li>Data reporting </li></ul></ul>Market Analysis <ul><li>Business Process Management </li></ul><ul><ul><li>Next Generation - Actionable Business Intelligence </li></ul></ul><ul><ul><ul><li>The integration that binds measurements to the process </li></ul></ul></ul><ul><ul><li>Implement Measure and Manage Repeatable best practices </li></ul></ul><ul><ul><ul><li>Move from ‘tribal’ to ‘institutional’ knowledge </li></ul></ul></ul>
    7. 7. Solution - Supplier Performance <ul><li>Supplier Performance Management Solution </li></ul><ul><ul><li>Challenges </li></ul></ul><ul><ul><li>Overview </li></ul></ul><ul><ul><li>Capabilities </li></ul></ul><ul><ul><li>Benefits </li></ul></ul><ul><ul><li>Architecture </li></ul></ul><ul><ul><li>Competition </li></ul></ul>
    8. 8. Challenges In “Meeting the Challenge: The 2009 CIO Agenda,” improving business processes was once again ranked as the No. 1 business priority. . .” Gartner Executive Programs Report, July 2009 Inefficient Operations Slow Responses Disconnected Teams Rigid Systems Leadership Operations Suppliers IT Framework
    9. 9. <ul><li>Executive Challenges: </li></ul><ul><li>Corporate Goal Alignment </li></ul><ul><li>Structure aligned to organization </li></ul><ul><li>Expense management and recovery </li></ul><ul><li>Supplier performance management and reporting </li></ul>Challenges Leadership Operations Suppliers IT Strategy Alignment & Expense Recovery Executive
    10. 10. Supplier and Process Management <ul><li>Inventory Management </li></ul><ul><li>Challenges: </li></ul><ul><li>Access to Information </li></ul><ul><li>Work Pipeline Visibility </li></ul><ul><li>Supplier performance measurement based on quality standards </li></ul><ul><li>Sharing standards and scorecards with partners </li></ul>Leadership Operations Suppliers IT Inventory Challenges
    11. 11. Operational Visibility and Control <ul><li>Operational Challenges: </li></ul><ul><li>Process management and configuration </li></ul><ul><li>Information management and configuration </li></ul><ul><li>Exception Handling </li></ul><ul><li>Tracking, managing and maintaining operation flow </li></ul>Leadership Operations Suppliers IT Operations & Transportation Challenges
    12. 12. Rapid Response to the Business <ul><li>IT Challenges: </li></ul><ul><li>Do More with Less </li></ul><ul><li>Business Responsiveness </li></ul><ul><li>Business-IT Collaboration </li></ul><ul><li>Internal Customer Satisfaction </li></ul><ul><li>Security and controls </li></ul>Leadership Operations Suppliers IT CIO Challenges
    13. 13. Solution Overview <ul><li>We bring together the expertise and knowledge to institute highly flexible, best-in-class, Supplier Performance Management Solutions tailored to our clients’ individual Supply Chain requirements. Ricoh solutions help our clients recognize their suppliers strengths and weaknesses in: </li></ul><ul><ul><li>Inbound Delivery Tracking </li></ul></ul><ul><ul><li>Quality of the product </li></ul></ul><ul><ul><li>Vendor historical performance </li></ul></ul><ul><ul><li>Product re-work expense recovery </li></ul></ul>
    14. 14. Solution Overview <ul><li>A framework designed to: </li></ul><ul><ul><li>Clearly define supplier performance metrics </li></ul></ul><ul><ul><li>Provide tools to measure & actionable metrics </li></ul></ul><ul><ul><li>Implement strategies for improved supplier performance </li></ul></ul><ul><ul><li>Support recovery of unexpected and product re-work charges </li></ul></ul>
    15. 15. Solution Capabilities <ul><li>Best in Class Capabilities </li></ul><ul><li>SCM Process Framework Requirements </li></ul><ul><ul><li>Executive Dashboards </li></ul></ul><ul><ul><li>Inbound Delivery Dashboard </li></ul></ul><ul><ul><ul><li>Track shipments from the supplier’s door to the buyer’s door </li></ul></ul></ul><ul><ul><li>Supplier Performance Dashboard </li></ul></ul><ul><ul><ul><li>Actionable supplier delivery metrics </li></ul></ul></ul><ul><ul><ul><ul><ul><li>On-time </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Complete </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Damage Free </li></ul></ul></ul></ul></ul><ul><ul><ul><ul><ul><li>Accurate Invoice </li></ul></ul></ul></ul></ul><ul><ul><ul><li>Individual Supplier Performance Scorecard </li></ul></ul></ul><ul><ul><li>Charge-back capabilities to recover rework costs </li></ul></ul><ul><ul><li>Drill-down capabilities </li></ul></ul><ul><ul><li>Actionable event and workflow management capabilities </li></ul></ul>
    16. 16. Solution Capabilities <ul><li>Best in class BPA tools provide: </li></ul><ul><ul><ul><ul><li>Web portal to simplify access </li></ul></ul></ul></ul><ul><ul><ul><ul><li>BPM flexibility to support critical Supply Chain workflows </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Configurability to meet the changing needs of the client </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Dashboard and drill-down analysis </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Actionable event and workflow based management and tracking </li></ul></ul></ul></ul>
    17. 17. Solution Benefits <ul><ul><li>Increase Productivity and Increase Volumes </li></ul></ul><ul><ul><ul><li>Exception based management </li></ul></ul></ul><ul><ul><li>Reduce returns and defects, recover rework expense, Improve customer experience </li></ul></ul><ul><ul><ul><li>Performance and Quality Standards </li></ul></ul></ul><ul><ul><li>Improve employee confidence, performance and reduce training and on-boarding impacts </li></ul></ul><ul><ul><ul><li>SCM Standards based BPM workflows </li></ul></ul></ul><ul><ul><li>Improved partner integration and relationships </li></ul></ul><ul><ul><ul><li>Real time vendor scorecards </li></ul></ul></ul><ul><ul><li>Fully integrated solution – One throat to choke! </li></ul></ul>
    18. 18. Solution Competition <ul><li>Supplier Performance Management Competition </li></ul><ul><ul><li>Categories </li></ul></ul><ul><ul><li>Comparison </li></ul></ul>
    19. 19. Solution Competition - Categories <ul><li>Categories </li></ul><ul><ul><li>Procurement and Supplier Contract Management </li></ul></ul><ul><ul><li>VAN and Strategic Partner Portals </li></ul></ul><ul><ul><li>Performance Management (Subscription service) </li></ul></ul><ul><ul><li>Custom Legacy </li></ul></ul><ul><ul><li>ERP (SAP, Oracle, Lawson) </li></ul></ul>
    20. 20. Solution Competition - Comparison Category Capabilities Drawback Examples Procurement & Contract Management Procurement management & contract audit Lacks performance tracking & chargeback capabilities - Ariba - Emptoris - Biznet Solutions <ul><ul><li>VAN and Strategic Partner Portals </li></ul></ul>Communications via EDI & transaction compliance Lacks quality, performance mgmt & expense recovery <ul><li>Inovis </li></ul><ul><li>Commerce Hub </li></ul>Performance Mgmt & Tracking Subscription service for performance measurement via market surveys Like eBay vendor rating based on surveys & lacks expense recovery <ul><li>Decideware </li></ul><ul><li>CVM Solutions </li></ul><ul><ul><li>Custom Legacy </li></ul></ul>Custom developed to meet the individual’s needs Rigid framework requires costly maintenance & partner integration ERP Highly integrated software with upgrade path Buy into vendor strategy and modify business to meet software <ul><li>SAP </li></ul><ul><li>Oracle </li></ul><ul><li>Lawson </li></ul>
    21. 21. Solution Competition <ul><li>No competitor meets all functionality! </li></ul><ul><li>Ricoh meets the challenge! </li></ul><ul><li>Our team provides the process integration </li></ul>
    22. 22. Solution Profiles <ul><ul><li>Environment Model </li></ul></ul><ul><ul><li>Ricoh Delivery Model </li></ul></ul><ul><ul><li>Solution Model </li></ul></ul><ul><ul><li>Integration Model </li></ul></ul><ul><ul><li>Support Model </li></ul></ul>
    23. 23. <ul><ul><li>Custom developed legacy applications in ‘stovepipes’ with cumbersome integration </li></ul></ul><ul><ul><li>Utilizing spreadsheets to track and manage performance </li></ul></ul><ul><ul><li>Limited or very simple partner integration </li></ul></ul>Environment Model Financial RDBMS Legacy Procurement ERP, CRM
    24. 24. Ricoh Delivery Model <ul><li>Ricoh will offer services for: </li></ul><ul><li>Assessment </li></ul><ul><ul><li>Capture and Document target Processes </li></ul></ul><ul><ul><li>Interview Stakeholders </li></ul></ul><ul><ul><li>Capture physical and electronic artifacts </li></ul></ul><ul><ul><li>Detail Complete Document Lifecycle Workflow </li></ul></ul><ul><li>Design </li></ul><ul><ul><li>Simple BPMN Process Modeling </li></ul></ul><ul><ul><li>Rules Design </li></ul></ul><ul><ul><li>Forms and Interface Design </li></ul></ul><ul><li>Execute </li></ul><ul><ul><li>Enterprise Scalability </li></ul></ul><ul><ul><li>Web Services Orchestration </li></ul></ul><ul><ul><li>Integration </li></ul></ul><ul><ul><li>Deployment </li></ul></ul><ul><li>Manage </li></ul><ul><ul><li>Task and Queue Management </li></ul></ul><ul><ul><li>Real-time Reporting and Status </li></ul></ul><ul><ul><li>In-Flight Modification </li></ul></ul><ul><li>Optimize </li></ul><ul><ul><li>Business Activity Monitoring </li></ul></ul><ul><ul><li>Round-trip Analytics and Process Optimization </li></ul></ul><ul><ul><li>Key Performance Indicators and SLA Reporting </li></ul></ul><ul><ul><li>Collaboration </li></ul></ul>
    25. 25. How Ricoh Delivers Accelerated BPM <ul><li>BPM Suite </li></ul><ul><li>Rapidly and easily unites your people, systems and data: </li></ul><ul><li>Simple BPMN process modeling to easily capture documentation and requirements </li></ul><ul><li>Rapid Application Development to turn process ideas into applications </li></ul><ul><li>Rich user portal for process participants to collaborate and complete work </li></ul><ul><li>Real-time visibility and reporting for managers and executives to gain new insight into process performance </li></ul>Fast Easy Solution Model Leadership Operations Suppliers IT
    26. 26. Integration Model <ul><li>People </li></ul><ul><li>Processes </li></ul><ul><li>Equipment </li></ul><ul><li>Data </li></ul>Supplier Performance Management
    27. 27. Ricoh Orchestrates Your Supply Chain PEOPLE PROCESS INTEGRATION SERVICES Internal Participants, Often Cross-Functional External Participants Integration Model
    28. 28. Support Model <ul><ul><li>Support Options </li></ul></ul><ul><ul><ul><li>Standard 9 – 5 Monday - Friday </li></ul></ul></ul><ul><ul><ul><li>Premium 7 x 24 </li></ul></ul></ul><ul><ul><li>Support Levels </li></ul></ul><ul><ul><ul><ul><li>Level 1 User questions - Ricoh </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Level 2 Configuration issues - Ricoh </li></ul></ul></ul></ul><ul><ul><ul><ul><li>Level 3 Core Bugs - Appian </li></ul></ul></ul></ul>
    29. 29. <ul><li>Appendix </li></ul>
    30. 30. SCM – Common Questions Question Typical Current Method Ricoh Capabilities What statistics are provided and how is historical information tracked? Statistics and historical metrics collected in spreadsheets, or, Access DB and not backed up Statistics identified by client and updated in recoverable DB and accessed through flexible & robust BPM tools How is the reporting structure matched to the organization? Standard set of reports require IT modification , or, spreadsheets/Access DB Utilize BPM and hierarchy workflow DB for standard and custom, user developed reporting. Can you modify flow to support revisions to process? Flow very strict, requires IT modification to update process and flows & documentation Flow is managed by client and modified based on client business requirements Methods for scoring the suppliers based on performance Standard updates for metrics and scores based on structured DB and coding Scoring is defined and via discovery and design process How is the re-work expense recovered? Structure and expense highly stringent. Expense recovered through AP and requires significant effort to modify Re-work expense and penalties defined by client and managed through BPM tool and integration with AP What is the cost to support this? Included in license and services
    31. 31. SCM – Common Questions Question Typical Current Method Ricoh Capabilities How do you track supplier performance? - Spreadsheets or Access DB reported in monthly reports. - We don’t Tracked via supplier scorecards that utilize metrics captured in the business process. Flexible & robust reporting that can be modified by users How are the orders tracked through the order to fill process? <ul><li>Via disparate stovepipe applications </li></ul><ul><li>- via ERP like SAP </li></ul>Integration to stovepipe apps and ERP. Process modified simply and quickly through configuration capabilities. How do you measure the perfect order? <ul><li>We don’t </li></ul><ul><li>- Manually through spreadsheets/Access DB </li></ul>On-time delivery, Quality of product, Order accuracy metrics captured in the process How are scores cards managed with suppliers to review performance? <ul><li>Scorecards created via legacy programs and then sent to respective suppliers </li></ul><ul><li>- Spreadsheet/Access DB sent to suppliers </li></ul>Supplier scorecard published via web portal Access managed via role based security methods How do you manage the quality inspection tracking and historical performance scoring ? Manually via spreadsheets, or simple requirements captured upon first receipt. Auto and manual status updates stored by both supplier and product. What is the cost to support this? Included in license and services
    32. 32. SCM – Common Questions Question Typical Current Method Ricoh Capabilities How are the key processes identified and managed for exceptions? Manually via spreadsheets, or simple requirements captured upon first receipt. Exception and handling requirements defined in discovery process and then maintained by end users in configuration. How is information shared and managed across the operation and the partners - Via legacy reports, spreadsheets & Access DB Information shared and managed by role and shared via web portal for ease and performance. How do you track on-time delivery? - Via legacy reports, spreadsheets & Access DB All statistics tracked via auto and manual updates during the process. Can the use be limited by role? - Yes by security access in legacy apps and by selective distribution of spreadsheets Yes, via role based access management What is the cost to support this? Included in license and services
    33. 33. SCM – Common Questions Question Typical Current Method Ricoh Capabilities How do you store & manage supplier performance statistics? - Legacy DB and spreadsheets that require coding and manual updates to support. Updated in hierarchical DB via auto and manual integration. What are the integration requirements? - Legacy stovepipe apps require coding changes Flexible and manageable via end user updates and auto integration to manual forms entry What are the requirements for publishing to the partners through the web? - Develop web site and integrate publishing from legacy apps. Manually maintained Web portal and role based access via BPM tool How do you manage the business process and workflow configurations? - Legacy apps require IT support and program changes. Documentation manually updated. Updated, created and deleted through tool . How do you manage security and access? - Manually via security access changes and limiting spreadsheet availability Security managed based on role and access requirements What is the cost to support this? Included in license and services

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