Key Performance Area
(Optional) Performance
Criteria Considerations
1.
2.
Major Concerns
Minor Concerns
3.
4.
Meeting Expectations Exceeding Expectations
Fit for purpose products
SLA/KPI:
- Supplying specified
products
- Providing specified
service levels
Returns
The supplier usually The supplier consistently
The supplier frequently
The supplier consistently
supplies goods and
supplies goods and
fails to supply goods and
exceeds the specification
provides a service
provides a service which
provide a service which
in terms of the goods and
which is compliant with
is compliant with the
meets the specification.
the service provided.
the specification.
specification.
Goods occasionally
KPI
Goods frequently have
have to be returned
- 100% reasons for returns to be returned due to a
due to a failure by the
provided
failure by the supplier.
supplier.
Quality
Continual
Improvement/Innovation
Innovation is embedded
The supplier does not
The supplier and buyer
There are some
as part of the business
identify or work with the
work together in
Such as
attempts by the
culture, the supplier works
buyer in identifying
identifying opportunities
- Identifying alternative
supplier at identifying
with the buyer in actively
opportunities
to
for
continual improvement
products more suited to
opportunities for
seeking opportunities for
the requirements of users introduce or implement continue improvement or innovation during the continual improvement
contract performance
- Product rationalisation to improvements in the
and innovation.
and innovation, and share
delivery
of
the
contract
review process.
expedite same function
the benefits.
products
Change Management
Such as
- Reactive or proactive
approach to change
management
Reference: PCD33-B
Returns due to a failure
by the supplier are
infrequent.
Returns due to a failure
by the supplier are rare
and supplier actively
works with customer to
understand if there are
other issues resulting in
the return.
Responds effectively
to change requests
Does not respond to, or
Responds effectively to
when prompted, but the
manage change
change requests when
response can be
effectively
prompted
slower than required
Proactively considers
change which could
impact users, responds
accordingly and
communicates promptly
Released: 15/04/2015
Key Performance
Area
(Optional) Performance Criteria
Considerations
1.
2.
Major Concerns
Minor Concerns
Pricing Stability
[Outwith agreed 12 month pricing reviews]
Prices are unstable,
frequent changes to
prices
3.
4.
Meeting Expectations Exceeding Expectations
Prices remain stable for the
agreed period of time. Any Prices remain stable after the
Infrequent changes to
changes have been
price review. Supplier
prices but not as a result previously communicated
actively manages pricing of the agreed price review. from Procurement Scotland passes on savings/extends
as a result of formal price
time period for fixed pricing
reviews
Invoice Accuracy
Such as
- Promoting opportunities to improve invoice
accuracy
Cost
SLA/KPI:
- Invoice queries resolved within 24 hours
Invoices are frequently Occasional problems with Invoices provide detailed, The supplier is proactive in
incorrect, invoices are the accuracy of invoices, accurate cost information, identifying opportunities to
unclear and queries are generally invoice queries queries seldom occur but are improve the invoice process
seldom resolved within 24 are resolved within 24
always resolved on the day to reduce error (cxml
hours
hours
they are raised.
invoicing, pcards, punchout)
Cost Reduction Initiatives
Such as:
- Promoting with organisations the use of
contracted products which offer better value
- Promoting the use of consolidated invoicing
- Promoting the use of consolidated ordering
- Promoting and supporting the use of eProcurement solutions (eg ePS, supplier
ordering portals)
Reference: PCD33-B
The supplier does not
identify initiatives which
could result in cost
reductions being
achieved.
The supplier responds to
cost reduction initiatives
which are suggested by
the buyer.
The supplier is proactive in
The supplier fully coidentifying cost reduction
operates with the buyers in
initiatives and promoting best
suggesting and responding
practice in order that they are
to cost reduction initiatives.
realised.
Released: 15/04/2015
Key Performance Area
(Optional) Performance
Criteria Considerations
1.
2.
3.
4.
Major Concerns
Minor Concerns
Meeting Expectations Exceeding Expectations
The supplier does not
promote products or
identify process
improvements which
have a positive
contribution to CSR
The supplier responds
to requests to promote
products or identify
process improvements
which have a positive
contribution to CSR
The supplier works with The supplier is proactive
the buyer in identifying in identifying opportunities
opportunities to provide
to provide products or
products or improve
improve process
process improvements improvements which have
which have a positive
a positive contribution to
contribution to CSR
CSR
Corporate Social
Responsibility
Sustainability
Such as
- Promotion of 'Green/Recycled'
products
- Opportunities to reduce
number of deliveries
(consolidate)
- Initiatives that impact upon
organisations green agenda
Reference: PCD33-B
Released: 15/04/2015
Key
Performance
Area
(Optional) Performance
Criteria Considerations
1.
2.
3.
4.
Major Concerns
Minor Concerns
Meeting Expectations
Exceeding Expectations
Responsiveness
Such as:
- Effective account management - queries
Generally responses to enquiries
dealt with/improvement suggestions made
or requests are dealt with timely,
where appropriate
The supplier does not readily respond to enquiries or
Consistently good response to
however there are occasions when
- Effective customer service - queries dealt
requests. The buyer is required to repeat requests.
enquiries and requests. Buyer and
these have to be repeated.
with promptly/appropriate information
Communication between the supplier and buyer is
supplier have effective
Communication channels between
supplied
virtually non-existent
communication channels.
the buyer and supplier are not as
- Notification of backorders (alternatives
effective as they could be
offered where appropriate)
- Effective communication - supplier ensures
there is regular contact and advises of any
new products or additional service benefits
Complaints
There are only a small number of
A large number of complaints are received from endComplaints or disputes are
complaints or disputes, the
users and the supplier does not readily respond or
minimal, but are always dealt with
Such as:
response is usually positive and
take corrective action. Disputes have to be escalated,
effectively without the need to
- Resolved by first point of contact
corrective action is taken if
with no recognition by the supplier of the need to
escalate and corrective action is
required, without the need to
improve performance
taken if required.
escalate.
Management Information
Generally provides the required Consistently provides the required
To be provided in the agreed format and
The supplier does not provide the required
Management Information in the
Management Information in the
within the agreed timeline with the specific
Management Information in the agreed format and
agreed format and within the
agreed format and within the
organisation
within the agreed timeline
agreed timeline
agreed timeline
Service Communication
How effectively does the supplier manage
communication and respond to enquiries?
Anticipates and responds to emerging
requirements. Responses provide
suggestions for improvement. Supplier
is pro-active in ensuring effective
communication channels.
The supplier is proactive in identifying
potential areas where complaints or
disputes may occur and works with the
buyer in taking measures to mitigate
against them.
Anticipates and responds to ad-hoc
Management Information whilst
providing the required Management
Information in the agreed format and
within the agreed timeline
Communication is generally
Communication is generally
The supplier is proactive in establishing
The supplier does not communicate effectively and instigated by the customer, and
instigated by the customer, but the
communication and immediately
issues raised by the customer are not responded to, the suppliers response is slow and
supplier promptly responds to
responds to issues as & when they
or managed effectively
/ or needs pursued for a response
issues or enquiries
arise
Lead Time/Delivery Time
SLA/KPI:
- 97% Next day delivery (3 day H&I) for
orders before 3pm or 4pm if electronic
procurement system
On time Delivery Against Objectives
Identified target levels are not usually met.
Sometimes failure to meet the
identified target levels
SLA/KPI:
- 97% line fulfilment
Sometimes failure to comply with
Deliveries and Returns do not usually meet the
- 97% order fulfilment
delivery and return schedule and
identified target levels.
- 98% returns uplifted next scheduled
identified target levels
delivery
- 98% out of stock lines fulfilled within 2
working days
Accuracy
Occasionally deliveries are
- 98% of achieved deliveries are accurate
Deliveries are frequently inaccurate - wrong products,
inaccurate - wrong products, short
against the corresponding Purchase Order
short delivery, delivery note does not match what was
delivery, delivery note does not
- Substitutions only occur where prior
delivered.
match what was delivered.
agreement has been made
Meets the identified target levels
Routinely exceeds the identified target
levels
Complies with delivery and returns Routinely exceeds compliance with
schedule and identified target delivery and returns schedule and target
levels
levels
Deliveries are always accurate, however
Deliveries are always accurate the supplier is also proactive in
with delivery notes accurately
identifying future problems and works
reflecting what has been delivered
with the buyer to mitigate against
and matching the purchase order.
problems occurring.
Ownership/Involvement
Reference: PCD33-B
Does the suppliers’ management structure
interface effectively with the customers
organisational structure? i.e. does the
The suppliers’ management structure and how it
supplier demonstrate involvement /
interfaces with the customer is not clearly defined or
ownership at the appropriate level e.g.
understood by the customer
Account Manager when many touch points
within supplier, MD for supplier for key
strategic suppliers owning relationship?
The suppliers management
The suppliers management
structure is partially aligned to the
structure is generally aligned to the
customers organisational structure,
The suppliers management structure is
customers organisational structure
but there are gaps meaning that
fully aligned to the customers
, but internal personnel changes
it’s not always easy for the
organisational structure . The customer
within the suppliers organisational
customer to communicate
can easily and effectively communicate
structure and / or holiday cover can
effectively with his equivalent at the
with their supplier equivalent
cause occasional gaps
supplier
Released: 15/04/2015