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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
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%Jan
uary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJun
eJuly
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJan
uary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJune
July
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJan
uary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJune
July
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJan
uary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJun
eJuly
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJanuary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJun
eJuly
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJanuary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJun
eJuly
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJan
uary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJun
eJuly
Au
gust
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJan
uary
Fe
bru
ary
Ma
rch
Ap
ril
Ma
yJun
eJuly
August
Se
pte
mbe
rO
cto
be
rN
ovem
be
rD
ecem
be
rJan
uary
Fe
bru
ary
Ma
rch
Ap
ril
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
0.0%
10.0%
20.0%
30.0%
40.0%
50.0%
60.0%
70.0%
80.0%
90.0%
100.0%Ja
nu
ary
Feb
rua
ry
Ma
rch
Ap
ril
Ma
y
Ju
ne
Ju
ly
Au
gu
st
Se
pte
mb
er
Octo
be
r
No
vem
ber
De
cem
ber
Ja
nu
ary
Feb
rua
ry
Ma
rch
Ap
ril
Ma
y
Ju
ne
Ju
ly
Au
gu
st
Se
pte
mb
er
Octo
be
r
No
vem
ber
De
cem
ber
Ja
nu
ary
Feb
rua
ry
Ma
rch
Ap
ril
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%
40%
60%
80%
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%
20%
40%
60%
80%
100%
120%
0
5
10
15
20
25
30
35
2012 2013 2014 2015
Timeliness of Notification of Goods Readiness
No. of PO lines evaluated
Timeliness of Notification of Goods Readiness
0%
20%
40%
60%
80%
100%
120%
0
5
10
15
20
25
2012 2013 2014 2015
Timeliness of Delivery
No. of PO lines evaluated Timeliness of Delivery
0%
20%
40%
60%
80%
100%
120%
0
20
40
60
80
100
120
140
160
180
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
Recommended