Supplier Relationship Management Building a Vendor Scorecard Process University of Virginia Procurement & Supplier Diversity Services Kristin Floyd Jay Gallimore Shannon Wampler

What You’re Going to Learn What is Supplier Relationship Management? Why Do You Need It? How to Measure Objectively Sample Metrics How to Start Your Own Scorecard

What is SRM? “A discipline of working collaboratively with those suppliers that are vital to the success of the organisation, to build trust and maximise the mutual value of those relationships.” Adrian Bower, State of Flux LTD

Why Scorecard?

Step 1

Step 2 “What gets measured gets managed.” Peter Drucker American management guru (1909-2005)

Which Metrics Work Best? Why/Why Not? Variance for Core List Pricing is 0% Average order size is <$15.00 Supplier identifies 5 cost saving measures within the Core List Supplier maintains 99% electronic invoicing Supplier communicates all relevant information efficiently Vendor provides excellent customer service Good Measurable Meaningful Addressable Aligned to RFP Goals Not So Good Measurable, but… Not Addressable Not Meaningful Good Meaningful Fosters Innovation and Collaboration Good Measurable Meaningful Addressable Promotes Revenue Not So Good Fosters Collaboration, but… Not Objective Not Measurable Not So Good Aligned to RFP Goals, but… Not Objective Not Measurable

Step 3 Category (Weighted) Goal (Weighted) Task

Step 4

Let’s See It!

The Vendor’s Point of View

Kristin Floyd Buyer, University of Virginia kaf4b@virginia Kristin Floyd Buyer, University of Virginia kaf4b@virginia.edu Jay Gallimore Web Application Developer, University of Virginia jpg8x@virginia.edu Shannon Wampler Procurement Analyst, University of Virginia saw2w@virginia.edu Yancey Jones, Jr. General Manager, The Supply Room Companies, Inc. jonesy@tsrcinc.net https://virginia.box.com/SACUBO2015 http://www.tsrcinc.net