Tools, Tips and Techniques
To view this video, you will have to needed to have read the PDF Supplier Response.
This is a standard question that you may find
in a PQQ or Tender.
Ok so what do you think? If you were the buyer how would you score this response?
Has it given you any real information?
Has it been backed up with evidence?
Do you really understand how this company
will monitor how they will meet your KPI criteria?
Does it fill you with confidence that they will do a good job, what has been achieved
and who will benefit?
Let’s look at the paragraphs in turn.
The first sentence states that a main priority is to meet KPI criteria.
Fair enough, but that is the whole point of the question,
it is implied that this would be a priority for any supplier.
The question is asking how this is monitored. The second sentence uses the word endeavour.
If you endeavour to achieve something you
never really achieve it, so within the first second the buyer is already thinking that
this supplier is not very good. And so it continues.
The second paragraph begins with a statement
that this supplier will agree the KPIs with the buyer
and use one of the buyer’s forms to do this.
However, the question is actually asking for how the buyer’s pre – determined KPIs
will be monitored and they are looking for a complete solution, not that they will have
to be part of that solution by providing part of the monitoring system!
It is likely that this response is a standard response from
this supplier’s generic tender document and so indicates to the buyer that
the attention to detail and thought against the specific requirement is sadly lacking.
There is also an overtone that problems can
be expected. Even though corrective action is mentioned,
this is not the point of the question.
The question is about how the supplier will monitor that they achieve the KPIs
not resolve problems.
So what could this supplier have done to give a better answer?
They need to evidence a proven process for
monitoring KPIs with a strong methodology that is underpinned by procedures that can
capture KPI achievement and that can drive improvement.
What systems do they have in place that will
capture the information required? What will they do with this information and what benefit
is this to the customer?
How often is this data collected and reviewed and by whom?
How is this information given to the Customer?
Is the customer a key stakeholder in the process?
How is feedback acted upon?
Let’s take a look at a different answer
to the same question and see how you feel about the supplier this time!
For this section, you need to refer back to
the second PDF that you’ve read before this video started.
This supplier has immediately responded to
the question in the first paragraph, showing that they have defined process and procedures
to monitor KPI achievement.
In this case this is backed up by inclusion of the process in their
quality policy and quality accreditation.
They also give the buyer confidence that they are very proactive and have a defined timely
approach over which they monitor KPIs, on a monthly and quarterly basis, but they go
one step further and actually look at using the monitoring process
as a means to introduce continuous improvement.
This is added value for this buyer, as it goes over and above the context of the question,
whilst still providing an in depth response. ::
The example table give the buyer an at a glance opportunity to see exactly when the monitoring
would take place and by whom.
The supplier then goes on to talk about their
online intranet system and how the monitoring form is available for the buyer to see.
Don’t worry if you do not have this level
of sophistication, provided you can evidence your KPI monitoring form in the response that
would serve just as well to highlight the exact format of your procedure.
The supplier then acknowledges that the performance
markings will follow the details given in the specification, showing the buyer that
they have read and understood those requirements.
Once again, the supplier goes on to add value by indicating their process for ensuring objectivity
in the scoring and evidence based analysis, by outlining the methodology followed in awarding
a score against each KPI. This follows the prescribed set of questions outlined.
The supplier then goes on to state how they will capture the monitoring data and use this
to evaluate performance, provide qualitative and quantitative evidence and to use this
evidence to plan for the future of the contract development.
In effect they have provided the buyer with
a system that will not only monitor the way they meet the KPI criteria, but to also examine
what has been achieved, who has benefitted from it and how this feedback can be used
in ongoing contract development.
So for the buyer not only can they feel confident
that this supplier has proven processes and procedures to meet the requirements, but that
these processes will actually help to develop the contract and maximise positive outcomes.