Supplier/Vendor Management
What is the Return on Investment (ROI)?

Presenters
Aaron Rudd
Vice President, Business &
Product Development, BROWZ
Derek Borgert
Vice President, CTO, BROWZ
Brett Armstrong
Vice President, Marketing,
BROWZ

Agenda
Why supplier/vendor management?
What is the organization impact?
What are the costs of doing it right?
What results can you expect?
Calculating ROI

Making a case for your program

Gain - Investment
Investment
Gain = expected losses – reduced losses
ROI =
Investment = Cost of a program

Cost of Incidents
National Safety Council
• $1,000,000 per death
• $29,000 per medically consulted injury
- Wage losses, medical expenses, admin
expenses, employer costs.
- Excludes indirect costs
Injury Facts® 2016 Edition

Fines and Penalties
Damages & Repair Costs
Lost Time
Litigation Costs and Civil Damages
Increased Insurance Costs

Indirect
Fines and Penalties
Damages & Repair Costs
Lost Time
Litigation Costs and Civil Damages
Increased Insurance Costs
Reputation damage
Overtime to offset production down time
Strained employee relations
Time to investigative time post-incident
Poor employee morale
Psychological impacts on affected employees
Future difficulty hiring new employees

Visit thecampbellinstitute.org/research
What do experts say?

Poll #1
Which of the following 5 steps are part of your current supplier
management program? (select all that apply)
• Prequalification
• Pre-job task and risk assessment
• Contractor training and orientation
• Monitoring of job
• Post-job evaluation

What results can I expect?
BROWZ contractors outperform
industry averages for key safety
metrics.

Building Blocks
of a Program

Building Team/Scope

What Information to Collect?
Health & Safety
Annual Accident
History
Injury & Illness Rates
Citations & Violations
Safety Programs &
Policies
Safety Manual Audits
Insurance & Risk
Certificates
Policy Types & Limits
Endorsements
AM Best Ratings
Certificate Holders
Supplier Demographics
Industry Codes
Licenses / Expirations
Quality Programs
Supplier Diversity
Ownership
Financial Stability
Bankruptcy
Liens
Judgements
Third Party Financial ratings
Industry Risk Comparison
Corporate Social
Responsibility
Sustainability
Waste Management
Child Labor
Anti-Corruption
Ethics

Poll #2
Which of the following are program elements in your supplier management program? (Select all
that apply)
• Health & Safety
• Insurance
• Legal
• Financial
• CSR/Sustainability
• Supplier Diversity
• Quality Systems
• Business Continuity

Program Set Up Technology
Implementation
CommunicationContractor Support
Data Review/Verification
Define your requirements.
“ Choose or create a
technology to track and
manage all the data.“
Contact each of your
contractors explaining your
requirements and asking
them to comply.
“
Have support personnel available to
assist each contractor to help them
achieve compliance.“
Verify and score compliance data
for accuracy, compliance and
completeness.“

Components of Prequalification
Gather contractor compliance data and
documents
Verification of contractor data through
document review and private and public
database sources.
Assessment of contractor data and
documents compared to client specific
requirements.
Data Maintenance through ongoing
notifications of deficiencies and expirations on
all time sensitive data.
Verify
AssessMaintain
Gather
Contractor
Compliance
Information

Post Prequalification Results

More than a 1-time
Event

Development resources
Diverse risk assessments
ERP integration
Monitor expiring data
And then there’s IT…
International capability
Security and disaster recovery
Real-time updates
Enterprise access

Gain - Investment
Investment
Gain = (expected losses – reduced losses)
1. Number of suppliers
2. Maturity of program
3. Technology infrastructure
4. Scope of implementation
Questions to ask…
www.BROWZ.com/roi

Upcoming Webinar
June 21 | 1 pm EDT
www.browz.com/webinar
Supplier & Vendor Prequalification
From the contractor’s perspective
A case study with

QUESTIONS
Calculate your ROI
www.BROWZ.com/roi

Contact us
www.BROWZ.com/en