2 Replies Latest reply on Apr 3, 2012 8:17 AM by jimklymus

    Internal Compliance Metrics

    jimklymus Novice

      We recently transitioned from another eSourcing application to Ariba. One of the things we would like to get in place for a scorecard metric is internal compliance in using the Ariba tool four our sourcing projects. Not compliance from the supplier perspective.

       

      One obvious metric is to compare current use to the prior application, but that tool was not used very much for a variety of reasons that a true comparison would not be valid. Wondering if there are any sort of best practices anyone knows about or has any experiences in post-implementation scorecard tracking. Set a metric against all possible RFx projects? Against a fixed amount (i.e., all possible RFx projects over $200k), etc...

       

      Thanks in advance.

        • Re: Internal Compliance Metrics
          Beverly Dunn Master

          Thanks for your posting, Jim.  With Ariba Sourcing, you can make smarter sourcing decisions and drive better results. Manage supply volatility and capacity constraints. Minimize supply risk with better supplier visibility. And build your sourcing pipeline with tools that achieve early ROI and long-term cost savings.  Ariba Sourcing is embedded with best practices to give your team an edge. Intuitive wizards guide users through project creation. Built-in tools and intelligence facilitate collaboration and negotiation. Advanced workflow and approval routing streamline project management and compliance initiatives.

           

          For your request, it sounds like you are looking for KPI's.  Key performance indicators (KPI) are high-level snapshots of a business or organization based on specific predefined measures. KPIs typically consist of any combination of reports, spreadsheets, or charts. They may include global or regional sales figures and trends over time, personnel stats and trends, real-time supply chain information, or anything else that is deemed critical to a corporation's success. The key indicators are agreed upon by an organization and are indicators which can be measured that will reflect success factors. The KPIs selected must reflect the organization's goals, they must be key to its success, and they must be measurable. Key performance indicators usually are long-term considerations for an organization.

           

          For KPI’s to be most effective, follow these suggestions:

                

          · KPI must be actionable

          · Measure against a goal or best practice

          · Monitor frequently so that issues can be identified and corrected quickly

          · Assign to an owner.

           

          Here are some KPI's for Sourcing that will allow you to measure performance, results, etc.  Your Ariba Sourcing solution has a robust reporting capability that will allow you to use pre-packaged or customized reports based on your KPI criteria.  Work with your Customer Enablement Manager to help you understand how to load these reports to your dashboard for quick and easy monitoring.

           

          User Related

          # of Active Suppliers

          # of registered Supplier

          # of registered Buyers

          # of trained users

          # active users

           

          Project Related

          # of new projects per month

          # of projects (cumulative)

          # of Sourcing Projects per month

          # of events per month per Type

           

          Spend Related

          # of Categories Sourced

          Spend volume processed per month

          Spend volume cumulative

           

          Process Related

          # of Sourcing Process Templates

          # of  custom RFx Templates

          # of category specific items (cost breakdown templates)

           

          Once you have good Key Performance Indicators defined, ones that reflect your organization's goals, one that you can measure, what do you do with them? Use Key Performance Indicators as a performance management tool, but also as a carrot. KPIs give everyone in the organization a clear picture of what is important, of what they need to make happen. You use that to manage performance. You make sure that everything the people in your organization do is focused on meeting or exceeding those Key Performance Indicators. You also use the KPIs as a carrot. Post the KPIs everywhere: in the lunch room, on the walls of every conference room, on the company intranet, even on the company web site for some of them. Show what the target for each KPI is and show the progress toward that target for each of them.  People will be motivated to reach those KPI targets.

           

          Good luck!

           

          Beverly Dunn

            • Re: Internal Compliance Metrics
              jimklymus Novice

              Thanks for the prompt reply. I fully understand KPI's and their purpose, so I'll look at the reports you mentioned. Most of these are things we considered, but like anything else, need some sort of target or denominator to track to. That's one of the problems "we" have to work out!

               

              Hoping to maybe hear back from others to see how they implemented an internal compliance program for their company to track employees using the tool and to what extent. Just hunting for some others best practices!