1 Reply Latest reply on Mar 13, 2012 7:06 AM by Sean Harley

    Supplier evaluation of subsidiaries of top 10 global suppliers in decentralized business environment

    stollenwerk Expert

      We are a diversified manufacturing company with hundreds of business units around the globe. Each of these decentralized business units have multiple suppliers.

      Our goal is that want  to evaluate the subsidiaries of all our top 10 global suppliers. We can identify these global suppliers using our spend management tool (not ARIBA).

      We plan to handle each of these 10 global suppliers as a separate project because of the sheer size of each project.

       

      Example:

      We identify DELL (example) as our number one largest global supplier using our spend management tool.

      Next we would start with identifiying the people & contacts from our business units that work with our global supplier DELL.

      Then we ask them to provide their local contacts details from DELL.

      All contacts from the external supplier organization and from each of the units needs to be uploaded into the ARIBA tool.

      Then we have the people from our units evaluate the local Dell companies. All evaluations should roll up in one scorecard.

      After that we would ask the local DELL companies to complete a supplier questionnaire. That way we have an up to date supplier profile database

       

      Questions:

      How do we set up these complex organizational structures best in the ARIBA Supplier management tool? I understand we can to set up "organizations", "Groups" and "Users", but how would that be best applied here? How do we have to set up the org structure for our units and for the suppliers? How do we link both of them together (example units Y (as part of our global company) works with suppliers X (which is opart of global supplier Z)?

      Anyone how is willing to discuss that with me offline or can provide some valuable help.

        • Re: Supplier evaluation of subsidiaries of top 10 global suppliers in decentralized business environment
          Sean Harley Novice

          The last part of your question: How to link specific sites/units at the supplier with specific sites/units/users at your company is by far the hardest to pull off.  Actually, it would be almost impossible to do between two large global companies.  And if somehow you got it done, it couldn't cost-effectively be kept up to date.  I recently helped a global oil & gas firm deploy a supplier evaluation system.  The rationale for not attempting the user to user linkage was that that the evaluations are supposed to be objective and consumable by anyone in the business.  Once completed, it is a Global Parent Evaluation not the Singapore Office's evaluation.  That was our objective from the start so we accepted the limitations of the available solutions.  Happy to discuss further.  I can be reached at +1 646-705-3720.