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

2. 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

3. 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

4. Why Scorecard?

5. Step 1

6. Step 2 “What gets measured gets managed.” Peter Drucker
American management guru
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7. 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

8. Step 3
Category (Weighted)
Goal (Weighted)
Task

9. Step 4

10. Let’s See It!

11. The Vendor’s Point of View

12. Kristin Floyd Buyer, University of Virginia kaf4b@virginia
Kristin Floyd Buyer, University of Virginia Jay Gallimore Web Application Developer, University of Virginia Shannon Wampler Procurement Analyst, University of Virginia Yancey Jones, Jr. General Manager, The Supply Room Companies, Inc.