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.

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.

3 In the 'supplier scorecard' tab there is the table heading 'acceptable score'. Assign an acceptable target for the supplier to
achieve in the cells below this heading for each specific KPI area

Data to be
completed

4 On a monthly basis record the suppliers score and compare it to the target to understand their performance

The KPIs, performance

The target, measurement and
KPI purpose can all be changed
s, as the Agency requires. to
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data in the cells and enter 'Acceptable score'  a numerical value has to be added here that can be
for measured and tracked over the following months
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 Note: This is an interactive tool for use

Supplier name Contract reference

Area Key performance indicator (KPI) Performance target Measurement

Goods or services can be consumed with no rework x% of

Fit for purpose Count of goods/services received that are subject to rework
time
Quality
Goods or services are provided to contracted specifications Count of goods/services that are rejected as unsuitable for
Compliant to specification x% of time consumption
x% of goods or services are provided in correct
In full Count of orders that are received incomplete
volume/quantity

x% of Goods or services are provided on date/time required Count of orders that are received later than expected or
Delivery On time required delivery time
Count of orders that are received defective and unable to be
Secure/no damage Less than x% of goods/services are defective on receipt by used
Count of rejected invoices as a consequence of incorrect
To Contract All goods/services are invoiced at contracted rate or less pricing
Cost
To industry benchmark Price paid is at industry/market benchmark +/- 2% Periodic industry benchmark of all unit pricing

The list of areas and KPIs within the "Supplier Count of urgent orders attended to within customer
Scorecard" tab of this tool can be changed to Supplier attends to urgent orders x% of time expectations
Customer service match the agency's requirements

x% of operational issues are resolved within X hours of

Issue resolution Count of issues unresolved within turn time
notification
Senior Management engagement demonstrates
Strategically Aligned understanding of business and alignment of supply to Count of relevant initiatives presented
business needs
Innovation
Supplier presents innovative and creative supply chain
Creative solutions solutions to increase performance across one or more KPI Count of relevant initiatives presented
areas

Open the "Supplier Scorecard" tab and input the standard

Risk is known data at the top of the sheet relating to the supplier, Presentation of risk management plan
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 is managed known risks are mitigated of known risks
Presentation of CSR plan that aligns to Government policy
Alignment to Vic Govt CSR Supplier knows Vic Govt CSR policy and public position
Social/environmental position
responsibility Supplier actively manages and reports to Vic Govt that own Presentation of action plan demonstrating clear
Management of CSR Agenda CSR policy is managed and effective management of CSR responsibilities

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

Issues unresolved

Change requests
 KPI and supplier performance scorecard
Month Year

Variance from
Purpose Acceptable score Score this month Trend
acceptable score

Rework adds cost to the business by consuming time and effort 90 87 0 ↑

Rejection of goods/services adds cost to the business and may 0 ↔

delay delivery of projects

Incomplete orders may add time and cost to delivery of projects 0 ↓

Late delivery of orders or other deliverables may add time and 0

cost to delivery of projects
Defective goods and/or services orders may add time and cost to 0
delivery of projects

Incorrect pricing leads to increased administrative costs 0

Vic Government expects to deliver best value to its customers. 0

Overpricing will lead to increased costs passed to customers

Essential services delivery is subject to external forces that force 0

responsive behaviour from suppliers.

Unresolved issues add stress to the relationship and could add 0

both cost and time to delivery

Continuous improvement and innovation adds value to the 0

relationship and has potential to reduce costs

Continuous improvement and innovation adds value to the 0

relationship and has potential to reduce costs

Risk adds complexity to service delivery and potentially adds to 0

both political sensitivity and public health issues

Risk adds complexity to service delivery and potentially adds to 0

both political sensitivity and public health issues
Unmanaged CSR adds to the public and political risk profile for 0
Vic Government and potentially adds cost
Unmanaged CSR adds to the public and political risk profile for 0
Vic Government and potentially adds cost
Overall ↔
 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
varian ce fro m acce ptab le sco re

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 scorecard tracking
Supplier
"Historical Tracking" sheet
12
In full

On time
10
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
 Creative solutions
2
Risk is known

Risk is managed
0

Month