Appendix 6 – KPI and Supplier performance scorecard

Context

This supplier performance scorecard tool provides a high-level summary of the performance of the supplier across a number of
key performance areas

This is linked to the 'KPI Template' and should contain the same KPI's defined when creating the KPI template.

The list of areas and KPIs in the 'Supplier Scorecard' tab of this tool can be changed to match the agency's requirements

Instructions

1 Open the 'Supplier Scorecard' tab and input the standard data at the top of the sheet relating to the supplier, contract,
month that the review is happening and year.
Data to be
completed Supplier name Contract reference

2 Identify and list all the KPIs to be measured for the supplier and change the data within the Area, KPI, Target and Purpose
to reflect the KPIs that are to be measured for the supplier.

Key performance indicator (KPI) Performance target Measurement Purpose

The KPIs, performance Goods or services can be consumed with Count of goods/services received that are Rework adds cost to the business by consuming
Fit for purpose
no rework x% of time subject to rework time and effort
T target, measurement and
h purpose can all be changed Compliant to specification
Goods or services are provided to Count of goods/services that are rejected as Rejection of goods/services adds cost to the
as the Agency requires. to contracted specifications x% of time unsuitable for consumption business and may delay delivery of projects
e
change them, delete the In full
x% of goods or services are provided in
Count of orders that are received incomplete
Incomplete orders may add time and cost to

K data in the cells and enter correct volume/quantity delivery of projects

P in the new information On time

x% of Goods or services are provided on Count of orders that are received later than Late delivery of orders or other deliverables
date/time required expected or required delivery time may add time and cost to delivery of projects
I
Less than x% of goods/services are Count of orders that are received defective Defective goods and/or services orders may
s Secure/no damage
defective on receipt by and unable to be used add time and cost to delivery of projects
,

p 3 In the 'supplier scorecard' tab there is the table heading 'acceptable score'. Assign an acceptable target for the supplier to
e
r achieve in the cells below this heading for each specific KPI area
f
o 'Acceptable score'  a numerical value has to be added here that can be
r measured and tracked over the following months
m
a Acceptable Score this
Purpose
n score month
c Rework adds cost to the business by consuming
e
time and effort
t
a Rejection of goods/services adds cost to the
r business and may delay delivery of projects
g
e 4 On a monthly basis record the suppliers score and compare it to the target to understand their performance
t
, T The 'variance from acceptable score' will automatically
h calculate based on the current month score and the
m e target the supplier was set
e
Score this Variance from
a " Trend
s month
V acceptable score
u a Manually change the trend,
r 0 r ↑ reviewing how the supplier did
e Insert the numerical score i compared to last month to
m the supplier has achieved a
in the relevant KPI 0 determine if they are improving
e n ↔
n c
t e
0 ↓
a f
n r
d 5 Copy the variance from acceptable score into the relevant month ino the historical tracking sheet to understand the
suppliers performance trends. m
p Paste into the right KPI and month cell
u A
Copy the variance c in the 'historical tracking' sheet
r C
p value from the Variance from acceptable cscore tracking
o e
o 'supplier scorecard'
s p p
sheet Variance from
y
e acceptable score Area Key Performancet Indicator (KPI) 1 2 3 4
a
c t Fit for purpose b
1 Quality
a h Compliant to specification
l
n e e

a v S
l Note
a
The graph requires two months of data to show a trend. If the area and
c KPI descriptions are changed in the 'supplier scorecard',
l this
r
must be reflected in the 'historical tracking' sheet. o
r
b i e
e a "
n
c c w
h e i
a l
n v l
g a
e a
l
 Note: This is an interactive tool for use
KPI and supplier performance scorecard
Supplier name Contract reference Month Year

Variance from
Area Key performance indicator (KPI) Performance target Measurement Purpose Acceptable score Score this month Trend
acceptable score
Goods or services can be consumed with no rework x% of
Fit for purpose Count of goods/services received that are subject to rework Rework adds cost to the business by consuming time and effort 0 ↑
time
Quality
Goods or services are provided to contracted specifications Count of goods/services that are rejected as unsuitable for Rejection of goods/services adds cost to the business and may
Compliant to specification 0 ↔
x% of time consumption delay delivery of projects
x% of goods or services are provided in correct
In full Count of orders that are received incomplete Incomplete orders may add time and cost to delivery of projects 0 ↓
volume/quantity
Count of orders that are received later than expected or Late delivery of orders or other deliverables may add time and
Delivery On time x% of Goods or services are provided on date/time required 0
required delivery time cost to delivery of projects
Count of orders that are received defective and unable to be Defective goods and/or services orders may add time and cost to
Secure/no damage Less than x% of goods/services are defective on receipt by 0
used delivery of projects
Count of rejected invoices as a consequence of incorrect
To Contract All goods/services are invoiced at contracted rate or less Incorrect pricing leads to increased administrative costs 0
pricing
Cost
Vic Government expects to deliver best value to its customers.
To industry benchmark Price paid is at industry/market benchmark +/- 2% Periodic industry benchmark of all unit pricing 0
Overpricing will lead to increased costs passed to customers

The list of areas and KPIs within the "Supplier

Count of urgent orders attended to within customer Essential services delivery is subject to external forces that force
Scorecard" tab of this tool can be changed to Supplier attends to urgent orders x% of time 0
expectations responsive behaviour from suppliers.
Customer service match the agency's requirements

x% of operational issues are resolved within X hours of Unresolved issues add stress to the relationship and could add
Issue resolution Count of issues unresolved within turn time 0
notification both cost and time to delivery
Senior Management engagement demonstrates
Continuous improvement and innovation adds value to the
Strategically Aligned understanding of business and alignment of supply to Count of relevant initiatives presented 0
relationship and has potential to reduce costs
business needs
Innovation
Supplier presents innovative and creative supply chain
Continuous improvement and innovation adds value to the
Creative solutions solutions to increase performance across one or more KPI Count of relevant initiatives presented 0
relationship and has potential to reduce costs
areas

Open the "Supplier Scorecard" tab and input the standard

Risk adds complexity to service delivery and potentially adds to
Risk is known data at the top of the sheet relating to the supplier, Presentation of risk management plan 0
both political sensitivity and public health issues
Risk contract, month that the review is happening and year

Supplier actively manages and reports to Vic govt that Presentation of information demonstrating active mitigation Risk adds complexity to service delivery and potentially adds to
Risk is managed 0
known risks are mitigated of known risks both political sensitivity and public health issues
Presentation of CSR plan that aligns to Government policy Unmanaged CSR adds to the public and political risk profile for Vic
Alignment to Vic Govt CSR Supplier knows Vic Govt CSR policy and public position 0
Social/environmental position Government and potentially adds cost
responsibility Supplier actively manages and reports to Vic Govt that own Presentation of action plan demonstrating clear Unmanaged CSR adds to the public and political risk profile for Vic
Management of CSR Agenda 0
CSR policy is managed and effective management of CSR responsibilities Government and potentially adds cost
Overall ↔

Contract value
Spend this month
Spend YTD
Contract life spend
Suppliers share of
category spend
Issues - resolved

Issues unresolved

Change requests
 Historical supplier scorecard tracking
Variance from acceptable score tracking Month

Area Key performance indicator (KPI) 1 2 3 4 5 6 7 8 9 10 11 12

Fit for purpose

Quality
Compliant to specification

In full

Delivery On time

Secure/no damage

To contract
Cost
To industry benchmark

Responsive to needs
Customer service
Issue resolution

Open the 'supplier scorecard' tab and input the standard data at the top
of the sheet relating to the supplier, contract, month that the review is
Innovation happening and year

Creative solutions

Risk is known
Risk
Risk is managed

Supplier scorecard tracking

12
In full
NOTE: The graph requires two months of data to show a trend. If the Area & KPI
descriptions are changed in the "Supplier Scorecard" this must be reflected in the "Historical On time
10
variance from acceptable score

Tracking" sheet
Secure/no damage

8 To contract

To industry benchmark
6
Responsive to needs

4 Issue resolution

Creative solutions
2
Risk is known

Risk is managed
0
Month
2
Risk is known

Risk is managed
0
Month