[webinar] contractor management: what is the return on investment (roi)?
Post on 17-Jan-2017
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Supplier/Vendor ManagementWhat is the Return on Investment (ROI)?
Presenters
Aaron RuddVice President, Business & Product Development, BROWZ
Derek BorgertVice President, CTO, BROWZ
Brett ArmstrongVice President, Marketing, BROWZ
Age
nd
a Why supplier/vendor management?
What is the organization impact?
What are the costs of doing it right?
What results can you expect?
Calculating ROI
Making a case for your program
Gain - Investment
Investment
Gain = expected losses – reduced losses
ROI =
Investment = Cost of a program
Cost of Incidents
National Safety Council• $1,000,000 per death
• $29,000 per medically consulted injury
- Wage losses, medical expenses, admin expenses, employer costs.
- Excludes indirect costs
Injury Facts® 2016 Edition
Fines and PenaltiesDamages & Repair Costs
Lost Time
Litigation Costs and Civil DamagesIncreased Insurance Costs
Indirect
Fines and PenaltiesDamages & Repair Costs
Lost Time
Litigation Costs and Civil DamagesIncreased Insurance Costs
Reputation damage
Overtime to offset production down time
Strained employee relations
Time to investigative time post-incident
Poor employee morale
Psychological impacts on affected employees
Future difficulty hiring new employees
Visit thecampbellinstitute.org/research
What do experts say?
Poll #1
Which of the following 5 steps are part of your current supplier management program? (select all that apply)• Prequalification
• Pre-job task and risk assessment
• Contractor training and orientation
• Monitoring of job
• Post-job evaluation
What results can I expect?
BROWZ contractors outperform industry averages for key safety metrics.
Building Blocks of a Program
Building Team/Scope
What Information to Collect?
Health & SafetyAnnual Accident HistoryInjury & Illness RatesCitations & ViolationsSafety Programs & PoliciesSafety Manual Audits
Insurance & RiskCertificatesPolicy Types & LimitsEndorsementsAM Best RatingsCertificate Holders
Supplier DemographicsIndustry CodesLicenses / ExpirationsQuality ProgramsSupplier DiversityOwnership
Financial StabilityBankruptcyLiensJudgementsThird Party Financial ratingsIndustry Risk Comparison
Corporate Social ResponsibilitySustainabilityWaste ManagementChild LaborAnti-CorruptionEthics
Poll #2
Which of the following are program elements in your supplier management program? (Select all that apply)• Health & Safety
• Insurance
• Legal
• Financial
• CSR/Sustainability
• Supplier Diversity
• Quality Systems
• Business Continuity
Program Set Up Technology Implementation
CommunicationContractor Support
Data Review/Verification
Define your requirements.“ Choose or create a technology to track and manage all the data. “
Contact each of your contractors explaining your requirements and asking them to comply.
“Have support personnel available to assist each contractor to help them achieve compliance.“
Verify and score compliance data for accuracy, compliance and completeness.“
Components of PrequalificationGather contractor compliance data and documents
Verification of contractor data through document review and private and public database sources.
Assessment of contractor data and documents compared to client specific requirements.
Data Maintenance through ongoing notifications of deficiencies and expirations on all time sensitive data.
Verify
AssessMaintain
Gather
Contractor Compliance Information
Post Prequalification Results
More than a 1-time Event
Development resources
Diverse risk assessments
ERP integrationMonitor expiring data
And then there’s IT…
International capability
Security and disaster recovery
Real-time updates
Enterprise access
Gain - Investment
Investment
Gain = (expected losses – reduced losses)
1. Number of suppliers
2. Maturity of program
3. Technology infrastructure
4. Scope of implementation
Questions to ask…
www.BROWZ.com/roi
Upcoming WebinarJune 21 | 1 pm EDT
www.browz.com/webinar
Supplier & Vendor Prequalification From the contractor’s perspective
A case study with
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