ingersoll rand - bobit studios...•branding/decaling •collision management •financing...
TRANSCRIPT
Ingersoll Rand
Jonathan Kamanns
Leader, Supplier Relationship Management
Supplier Relationship Management
Global Process Ownership
• What is Supplier Relationship Management (SRM)?• Why do we need it - Benefits?• Supplier tiers• Key roles in governance• Scorecard• Actions log• How do we ensure continuous improvement?• Success deliverables• Maturity in SRM
SRM must be genuine!
What is SRM?
Our suppliers influence our success the same way our own employees do; we have to define success.
In alignment with our Value Proposition …it is:
• A more formal & consistent management of our global and regional supplier relationships
• A more consistent collaboration with our regional suppliers with the goal of generating mutual value
• A structure for how regional & global supplier relationships are developed & maintained
• A way to foster continuous improvement and enable mutual strategic planning & benefit
• An enabler for additional leverage opportunities net yet uncovered
• A single-point of coordination between Company and supplier
Supplier relationship management (SRM) is the discipline of strategically planning for, and managing, the post-contract interactions with our suppliers in
order to maximize the value of those relationships and ultimately define our mutually beneficial successes.
Benefits of SRM
• Improved visibility and accountability of regional & global suppliers:– Missing the mark– Driving performance
• Better access to, and visibility of, regional & global supplier expertise not currently leveraged
• Mutual relationship-driven improvements and success– Productivity– Process Improvement– Profitability
• Potential for regional & global suppliers to add resources and investment to keep costs minimal
The supplier contract is a critical foundation, but success after the contract is our responsibility.
Primary, Secondary & Tertiary Suppliers
• Fleet Leasing/Management
• Driver Risk Management
• Fuel
• Maintenance
• Vehicle Logistics
• Telematics
• Remarketing
• Up-Fitting
• Branding/Decaling
• Collision Management
• Financing
Prioritize
Supplier Tiers
Tier 1 – Top 10%
•High value strategic supplier
•Invest in growing relationship
•Quarterly Scorecard
Tier 2 – Next 20%
•Managed supplier
•Invest to growing relationship
•Bi-annual Scorecard
Tier 3 – Next 30%
•Non-Core but important
•More easily transferrable spend
•Annual Scorecard
Tier 4 – Next 40%
•Lowest impact
•No Scorecard
Suppliers are
segmented by
not only cost
but also on risk
to the
organization.
Although high $
suppliers must
be managed,
high-risk
suppliers should
be equally
managed
Key Roles in SRM & Governance
Supplier
Business Process Owner
Business Process Administrator
Supplier Relationship Manager
Sourcing
•Delivery of product or service
•Industry Benchmarking
•Reviewer of relationship
•Ownership of deliverables, expectations & KPIs/SLAs
•Subject matter expert
•Reviewer of relationship
•Administrator of deliverables/expectations & KPIs/SLAs
•Day-to-day supplier interaction
•Reviewer of relationship
•Relationship Champion
•Coordination & Escalation point
•SRM Continuous Improvement
•Contract Negotiations with initial SLAs
•Participation in Business Reviews
•Reviewer of relationship
Responsibilities of Key Roles in SRM
Potential Business Process Administrators
• Fleet
• Human Resources
• Risk Management
• Environment, Health & Safety
• Legal
• Compensation & Benefits
• Procurement/Sourcing
• ‘The Business’
Who should I include?
Scorecard Elements
• Service Level Agreements (contractual obligations)
• Key Performance Indicators (non-contractual improvements)
– Customer Satisfaction
– Innovation
– Quality
– Cost
– Speed
Example Scorecard
Example Actions Log
Continuous Improvement
Supplier Relationship Management
Review SRM Level
Relationship Strengthening
Sustain & Manage
Continuous Improvement
Reviewed twice a year
against criteria
(internal readiness)
Monthly meetings
with business
process owners &
SRM
Scorecard reviews
with suppliers
(external readiness)
ID additional
opportunities
• RIEs
• Projects
Action
Scorecards:
• Customer
Satisfaction
• Innovation
• Cost
• Quality
• Speed
SRM Success Deliverables
• Development of mutually beneficial relationships from primary through tertiary suppliers
• Regional & global supplier visibility and alignment
• Engaged internal & external partnerships in achieving both sets of business goals
• Extended influence on supplier’s supplier(s)
• Delivery of maximum value & efficiency to internal customers with speed & precision
• Performance-driven deliverables relevant to continuous improvement
• Ensures that both parties have direct access to additional POC’s
• Documented history of performance with alignment across the organization
SRM Governance
• SRM Policy
• SRM Playbook
• SRM Shared Site
– Templates
– Updates
SRM GPO Policy
SRM GPO Playbook
SRM GPO on BOS On-Demand
Supplier Meetings Template
• (5) Introductions
• (20) Company Updates & Trends– New Products, services, & technology
– Industry Updates & Trends
– Benchmarking
• (45) Review of Current Business– Scorecards
– Action Plans / Issues & Resolutions
– Volume & Spend
– Locations
– Experience
– Sub-Supplier Review
– Project Status Update
• (10) Cost Out Opportunities
• (20) Review Strategic Priorities
• (15) Next Steps, Takeaways, Action Items
• (5) Q&A
Q&A