If PCS-Tender is being used, the Procurement Officer should input the weightings in relation to the specified criteria. Please note that all sections should add up to 100 and all questions within each section should also add up to 100. An example of scoring methodology provided below should be used when utilising PCS-Tender: 0 Unacceptable Nil or inadequate response. Fails to demonstrate an ability to meet the requirement. 25 Poor Response is partially relevant and poor. The response addresses some elements of the requirement but contains insufficient/limited detail or explanation to demonstrate how the requirement will be fulfilled. 50 Acceptable Response is relevant and acceptable. The response addresses a broad understanding of the requirement but may lack details on how the requirement will be fulfilled in certain areas. 75 Good Response is relevant and good. The response is sufficiently detailed to demonstrate a good understanding and provides details on how the requirements will be fulfilled. 100 Excellent Response is completely relevant and excellent overall. The response is comprehensive, unambiguous and demonstrates a thorough understanding of the requirement and provides details of how the requirement will be met in full. If the Procurement Officer is not utilising PCS-Tender for their procurement, an example of scoring methodology provided below and should be used in conjunction with the : this can be tailored to suit the specific requirements of your procurement exercise. 0 Unacceptable Nil or inadequate response. Fails to demonstrate an ability to meet the requirement. 1 Poor Response is partially relevant and poor. The response addresses some elements of the requirement but contains insufficient/limited detail or explanation to demonstrate how the requirement will be fulfilled. 2 Acceptable Response is relevant and acceptable. The response addresses a broad understanding of the requirement but may lack details on how the requirement will be fulfilled in certain areas. 3 Good Response is relevant and good. The response is sufficiently detailed to demonstrate a good understanding and provides details on how the requirements will be fulfilled. 4 Excellent Response is completely relevant and excellent overall. The response is comprehensive, unambiguous and demonstrates a thorough understanding of the requirement and provides details of how the requirement will be met in full. Any documents you need are listed below: (file type: xlsm)
Regardless of how formal a commodity strategy is, or is not, there is always thought and decision making on how the contract or agreement will be set up, who the potential supply base is and what the desired outcome is. A straightforward way of assessing the potential level of C&SM required is to consider the: value (both monetary and importance to the organisation) and; risk (also considering diversity of supply base and reputation) of the contract/agreement. Please find attached a link to the Segmentation Tool. The purpose of this exercise segments the contract portfolio into four categories (Leverage, Strategic, Bottleneck, Routine), which will allow an organisation to estimate the extent of work involved in managing each category. This information can be used to populate the segmentation-based Resource Calculator Tool. This tool will provide an estimated resource calculation. There is a natural tendency to over-estimate the work required, and it is important to avoid this trap by being as pragmatic as possible. Where possible, it would be worthwhile comparing/collaborating with a similar organisation which has a more mature C&SM operation, especially where an organisation lacks the experienced managerial staff required to make informed judgements. This collaboration will allow the organisation to benefit from the experience of the more mature organisation and to factor in distortions such as the learning curve they will experience on the journey toward maturity. Roles and Responsibilities Category A, B & C Ownership and Workflow Organisation’s Board / Senior Management Team Board / Senior Management sponsorship is a critical element to facilitate the success of the Contract and Supplier Management Initiative. The Board / Senior Management Team should take the ultimate strategic ownership of business critical, strategic supplier(s), and be fully committed to improving the contract performance collaboratively with those suppliers.
they and/or their suppliers are performing in relation to their strategic goals and objectives. Examples can be found . Management Information (MI) It is important that your MI requirements are clearly defined and communicated to the supplier. MI is used to monitor the supplier or contract performance and to ensure management have the information necessary to facilitate effective strategic and operational decisions. An example of MI can be found . Escalation: Performance issues should be addressed immediately, and escalated within the supplier organisation if not resolved promptly. If you find that the supplier is not delivering the agreed level of service, you should raise this with them immediately. For expediency, this can be done by telephone but should be followed up in writing. The supplier should be asked for an action plan to ensure that the required levels of service re-commences in a short time frame. Depending on the severity of the issue, it may also be necessary to hold a face-to-face meeting with the supplier. All discussions/meetings etc. should be minuted to ensure an audit trail exists. If resolution of the issue is not completed within the timescales agreed then the issue should be escalated (see below) and your procurement contact notified of the problem. If the issues raised are not resolved to your satisfaction, then they should be escalated within the supplier organisation, and an early face-to-face meeting arranged where actions and timescale to remedy the situation should be agreed and implemented. The recovery actions should be monitored on a regular basis to ensure that the agreed recovery / resolution dates do not slip. All discussions/agreements should be noted in writing. Contract Managers should ensure the escalation process is clearly defined, understood and communicated to all stakeholders and End Users. Incentives and Sanctions Incentives and sanctions should be used appropriately to maintain/improve the contract /supplier performance. There are specific contract terms and conditions that can be used to help drive contract compliance/performance, and these should incorporated into the Ts & Cs. You should ensure that you understand the specific contract terms and conditions, and that any incentives and sanctions considered are appropriate and legally enforceable. It is recommended to seek legal advice if in doubt as to the wording, appropriateness or legality of a proposed condition. Examples of incentives and sanctions which could be considered are listed below, but must not be applied autonomously. Appropriate internal approval must be sought and received prior to implementation. Incentives could include; Contract Extension options