SUPPLIER PERFORMANCE

MONITORING

Jan Komrska

Nutrition Unit

Medicines and Nutrition Centre

Nutrition Suppliers Meeting, 30 June 2015, Copenhagen

Performance measurement

• Key Performance Indicators (KPIs)

• KPI 3 (on time delivery to the port of entry)

• KPI 4 (on time delivery by supplier)

• Agreed Target Arrival date (TAD) constitutes Supply

Division commitment to Country Office

Key Performance Indicators

Goods

Notification

Supplier Country

Office

Supply

Division

RequisitionPurchase

Order

KPI 3 KPI 4

Agreed

TAD

Requested

TAD

Agreed

Delivery

Date

Freight Forwarder

SD delivery timeliness to the port of entry

2011 2012 2013 2014 Apr-15

Target 95% 95% 95% 95% 95%

MNC (direct) 51% 56% 65% 57% 61%

TLC (from WH) 78% 46% 41% 63% 73%

2011 2012 2013 2014 Apr-15

Target 95% 95% 95% 95% 95%

MNC (to port of

departure)

48% 44% 40% 62% 66%

Supplier delivery timeliness

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Percentage of all orders for pharmaceutical and nutritional delivered at port of entry at, or within, agreed upon TAD

2008 2013 20142007 2009 2010 2011 2012 2015

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Percentage of all orders for Nutrition, delivered at port of entry at, or within, agreed upon TAD

2013 2014 2015

Purpose

• to establish generic criteria for evaluating and

monitoring supplier performance against their

contractual obligations

• to assist procurement centers in selection of

invitees

DP 69 Monitoring Supplier Performance

Objective

• To ensure Supply Division has well performing

suppliers to invite to bid, reliable suppliers for

use, while mitigating SD against poor supplier

performance and minimizing the risks of

delivering to our customers’ poor quality products,

of the wrong quantity and not in compliance with

the agreed timeframe.

What do we measureKey Categories Performance Metrics Performance Baseline

Quantity Delivery quantity 1. Delivered quantity +/- 10% of the Purchase Order (PO) quantity

Quality SD Delivery:- Goods Receipt Inspection

2. Product quality acceptable in meeting specification/shipping instruction/marking

Direct Shipment:- Pre Delivery Inspection

3. Product quality acceptable in meeting Pre Delivery Inspection Criteria

Complaints 4.Complaints received in SD (for information only)

Time Timeliness of PO Acknowledgement 5. Less than or equal to 7 working days after Purchase Order placement

Timeliness of Notification of Goods Readiness

6. Notification of Goods’ Readiness parameter (Greater than or equal to 3 working days before potential delivery)

Timeliness on PO Agreed Delivery 7. Specified PO Agreed Delivery Date ( Less than or equal to 5 working days / in accordance with Purchase Order)

Timeliness of Delivery 8. Less than or equal to 5 working days after Purchase Order delivery date

Procurement Document Flow

Goods

Notification

Acknowledgement

formSupplier

Freight

Forwarder

Freight

Forwarder

Purchase

Order

Purchase

Order

(Copy)

5days

3days

Timeliness Measurement

• PO Acknowledgement Timeliness

• (AB “creation” date – PO Release date) should be not less than 7

working days

• Notification of Goods Readiness Timeliness

• (PO Delivery Date – ZA “creation” date) should be not less than 3

days

• PO Agreed Delivery Time

• (ZA Delivery Date – PO Delivery Date) if less than 5 working days

considered on time

• Timeliness of Delivery

• Direct orders (FF Delivery Date – PO Delivery Date)

• Warehouse Replenishment (Posting Date – PO Delivery Date) if

less than 5 working days considered on time for both

Acceptable limits

Goods

Notification

Acknowledgement

formSupplier

Freight

Forwarder

Freight

Forwarder

Purchase

Order

Purchase

Order

(Copy)

5days

3days

7days

3days

5days

Supplier Performance Card

Performance Metric Performing Under Performing

Delivery Quantity ≥ 90% to ≤ 110% < 90%, >110%

Goods Receipt If average score ≥80% < 80%

Pre-Delivery Inspection evaluation

If average score ≥80% < 80%

Timeliness of PO Acknowledgement

If average score ≥95% <95%

Timeliness of Notification of Goods Readiness

If average score ≥95% < 95%

Timeliness on PO Agreed Delivery

If average score ≥95% < 95%

Timeliness of Delivery If average score ≥95% < 95%

Performance Examples

0%

20%

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100%

120%

0

5

10

15

20

25

30

35

40

45

2012 2013 2014 2015

Timeliness on PO Agreed Delivery

No. of PO lines evaluated Timeliness on PO Agreed Delivery

0%

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120%

0

5

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30

35

2012 2013 2014 2015

Timeliness of Notification of Goods Readiness

No. of PO lines evaluated

Timeliness of Notification of Goods Readiness

0%

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120%

0

5

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25

2012 2013 2014 2015

Timeliness of Delivery

No. of PO lines evaluated Timeliness of Delivery

0%

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2012 2013 2014 2015

Timeliness of PO Acknowledgement

No. of PO lines evaluated Timeliness of PO Acknowledgement

Recommendations

• PO Acknowledgments to be sent on time;

• Goods Notifications to be sent when goods are ready for

loading or pick up (all documentation is ready);

• When FF is not picking up goods, notify UNICEF

Thank you for helping is deliver supplies on time!