Properly Aligning Supplier Performance with Overall Program Performance

When our retail client’s preferred supply base was struggling to achieve the established supplier scorecard goal of 80% for successful contractor assignment completions, the impact it caused to the overall scorecard proved to be significant. Given our client’s AGS managed services (MSP) programme does not require hiring managers to use our preferred supply base, opting to choose suppliers outside of the programme would significantly drive up costs. Also, while the MSP programme was regularly exceeding the set service level agreement (SLA) goal for successful finishes (85%), the client requested that 2016’s supplier success finish goal be altered to more accurately reflect supplier performance, while still maintaining a strong emphasis on quality within the programme.

To determine the best recommendation for our client, AGS’ business analytics team sought out to reanalyse historical data in order to better gauge supplier performance. Given our client has about 400 contractors spread across several labour categories, a single negative finish could cause an individual supplier to fail the metric, and ultimately, negatively impact their total score.

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