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Supplier Management Supplier Briefing Pack Version 1.1 26-2-13

Supplier Management Supplier Briefing Pack Version 1.1 26-2-13. Managing the performance of suppliers, ensuring VFM for customers, is a key activity for GPS. All GPS suppliers are managed, with the greatest focus put on the most strategically important suppliers.

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Supplier Management Supplier Briefing Pack Version 1.1 26-2-13

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  1. Supplier ManagementSupplier Briefing PackVersion 1.1 26-2-13

  2. Managing the performance of suppliers, ensuring VFM for customers, is a key activity for GPS. • All GPS suppliers are managed, with the greatest focus put on the most strategically important suppliers. • Suppliers are segmented, based on their spend by customers and a careful assessment of commercial risk. Suppliers are identified as being: • Strategic (currently 62 suppliers) • Operational • Transactional

  3. Each strategic supplier has a dedicated GPS Supplier Manager, who takes primary responsibility for managing the relationship and performance. • We maintain a Supplier Action Plan (SAP): performance, objectives and actions, communications and risks. The SAP is maintained and reviewed by the GPS Supplier Manager and is shared with the supplier. • We meet with strategic suppliers monthly to review and manage performance. Operational and transactional suppliers are met on a less-frequent basis. • We also have a dedicated supplier audit team, who audit suppliers’ systems to an agreed plan.

  4. Key Performance Indicators (KPIs) • From March 2013, all strategic suppliers will be measured against a set of five corporate KPIs: • Framework Management • Spend Under Management (SUM) • Operational Efficiency / Price Savings (OE/PS) • Demand Management Savings (DMS) • Customer Satisfaction • Some suppliers will also be measured against framework or category specific KPIs.

  5. KPIs

  6. KPIs

  7. KPIs

  8. KPIs

  9. Customer Satisfaction KPI • We will use quarterly Supplier Performance Appraisals (surveys)to collect information from customers on the performance of strategic suppliers. This information will be used to calculate each supplier’s Customer Satisfaction KPI. • Each Supplier Performance Appraisal will focus on the performance of a specific supplier under a specific framework agreement. • The Supplier Performance Appraisal surveys will be in addition to the general customer satisfaction surveys that we conduct quarterly. • For some ‘Regular Repeat Use’ frameworks, e.g. Energy, the same group of customers will regularly purchase from the same supplier. We will work with customers to identify customer user-groups to participate in the surveys.

  10. Customer Satisfaction KPI continued… • For other ‘Episodic Use’ frameworks, a customer might use a particular framework (and a particular supplier on that framework) only periodically. We will use MI to identify potential survey participants (e.g. a random sub-set of recent customers). • We will engage with all customers to explain the purpose of the Supplier Performance Appraisals, encourage participation and feedback results. • The Supplier Performance Appraisals will be issued via the GPS eSourcing suite but customers will not need to log-in to complete a survey. Customers will receive an invitation email, with a link directly to the survey response page. • Surveys should only take a few minutes to complete, and the information provided will be invaluable in assisting GPS to manage supplier performance and to ensure excellent VFM for all customers.

  11. Supplier Performance Appraisal – example survey questions

  12. Spend under Management (SUM) KPI • The SUM KPI is: “For each year the framework is live, the supplier will achieve a minimum of £X spend with new customers to that supplier on that framework.” • The purpose of this is to incentivise suppliers to bring new customers on-board, enabling customers to benefit from improved VFM. • The value of £X will be agreed between GPS and the supplier, and monthly SUM targets will be set. • Each customer’s spend counts as new until the end of the contract-year* in which the customer first used the framework with that supplier. • * the contract-year ends with the anniversary of the ‘go live’ date of the framework agreement. • In other words, at the end of year 1 of a framework, any existing customers become ‘old’ – and the target for year 2 is then about attracting ‘new’ customers. The same thing happens at the end of year 2 etc...

  13. New Customer Spend - examples

  14. Measuring the SUM KPI • Each month, a supplier’s MI will be used to calculate the amount of new customer spend for each framework. This will then be compared to that month’s agreed SUM target: • Where the supplier’s new spend meets or exceeds the SUM target the supplier will score the maximum 100 for this KPI. • Where the supplier’s new spend is less than the SUM target, the supplier’s KPI score will be calculated as: (New Spend)/(SUM Target) *100 • Note that for the Energy frameworks, SUM will be calculated on the basis of VOLUME not SPEND.

  15. New Customer Spend – Example

  16. New Customer Spend – Example

  17. Key aspects of GPS Supplier Management     

  18. GPS Strategic Suppliers Energy (3) • British Gas Trading Limited • CORONA ENERGY RETAIL 4 LTD • EDF Energy Customers plc Office & Communications (6) • CANON (U K) LTD • IRON MOUNTAIN (U K) LTD • M4C (a trading division of GroupM UK Ltd) • OFFICE DEPOT UK LTD • ROYAL MAIL GROUP LTD • XEROX (UK) LTD

  19. GPS Strategic Suppliers Travel (3) • Calder Conferences Limited • HOGG ROBINSON PLC • REDFERN TRAVEL LTD Fleet (11) • BABCOCK LAND LTD • Enterprise Rent-A-Car U K Ltd • FORD MOTOR COMPANY LTD • General Motors UK Ltd • Goodyear Dunlop Tyres UK Ltd • HERTZ (U.K.) LTD • KIA MOTORS (U K) LTD • LAND ROVER • LEX AUTOLEASE LTD • Michelin Tyre Plc • PEUGEOT MOTOR COMPANY PLC

  20. GPS Strategic Suppliers ICT (13) • BRITISH TELECOMMUNICATIONS PLC • CABLE & WIRELESS U.K • COMPUTACENTER (UK) LTD • FUJITSU SERVICES LTD • HEWLETT-PACKARD LTD • INSIGHT DIRECT (U K) LTD • LEVEL 3 COMMUNICATIONS LTD • LOGICA UK LIMITED • Microsoft Ireland Operations Ltd. • ORACLE CORPORATION U K LTD • SPECIALIST COMPUTER CENTRES PLC • Virgin Media Business Ltd • VODAFONE LTD

  21. GPS Strategic Suppliers • Professional Services – Health (8) • Brookstreet Ltd • Capita Business Services Ltd • LOCUMS LTD • Hays Specialist Recruitment Ltd • MAYDAY HEALTHCARE PLC • MEDACS HEALTHCARE PLC • REED PERSONNEL SERVICES LTD • LINK UP MITAKA LTD (T/A The Big Word) Professional Services (10) • Brookstreet Ltd • CAPITA RESOURCING LTD • Deloitte LLP • ERNST & YOUNG LLP • KPMG LLP • L.A. INTERNATIONAL COMPUTER CONSULTANTS LTD • McKinsey & Company, Inc. United Kingdom • PA Consulting Services Ltd • PARITY GROUP PLC • PricewaterhouseCoopers LLP

  22. GPS Strategic Suppliers Property (10) • CARILLION SERVICES LTD • Deloitte LLP • ITW LIMITED • INTERSERVE (FACILITIES MANAGEMENT) LTD • JEWSON LTD • MITIE FACILITIES SERVICES LTD • THE BSS GROUP LTD • SENATOR INTERNATIONAL LTD • THE SUNLIGHT SERVICE GROUP LTD • Turner & Townsend Project Management Ltd

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