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

QUESTIONS

Calculate your ROIwww.BROWZ.com/roi

Contact uswww.BROWZ.com/en