Reduce risk. Reduce cost. Raise performance.

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1 Reduce risk. Reduce cost. Raise performance. Services for professional procurement. Be better informed, make better decisions. Supplier Management Service (SMS) Sector-specific qualification for key suppliers

2 Industry-specific supplier risk management As a Purchasing, Supply Chain or Vendor Management professional you are faced with the increasing challenges of managing data, compliance and risk in your supplier sourcing and procurement activities. Achilles Supplier Management Service (SMS) supports your organisation s risk management and procurement strategy by reducing the cost, effort and risk of sourcing and managing key suppliers. Validated information on key suppliers Achilles works with each of our industry sector communities to define the supplier qualification standards required. We collect, validate and share this supplier qualification information with our customers via an advanced and secure online platform. Our Supplier Management Service is used by around 800 of the world s largest buying organisations to source and select suppliers that offer the products, services and standards they need. The heart of our solution is a systematic supplier qualification programme with data capture through online questionnaires supported by rigorous validation through our assessment teams and qualified auditors. These qualification questionnaires and stages are configured to reflect the specific requirements of each industry sector we serve: Automotive Construction Transport Utilities ICT Mining & Cement Pharmaceutical Power & Tech Oil & Gas Public Sector FMCG New Sectors Our secure cloud-based platform allows your buyers to search for products and services and view validated compliance and risk assessment information on the associated suppliers. Supplier qualification and risk management We develop industry-specific communities to meet the qualification needs of our buyers, providing a range of services and benefits: Best-practice qualification standards agreed by the industry Fully managed supplier data capture and validation Systematic risk management and compliance Supplier data consolidation on a single platform Advanced online search and filter functionality Access to new pre-qualified suppliers Risk management information for stakeholders With our Supplier Management Service you know that all existing and prospective suppliers you access in the community have gone through the same rigorous process of validated qualification. We reflect your industry sector s protocols and standards in the supplier qualification process driving consistency and compliance across your purchasing activities. My use of Achilles was not due to a cost factor, it was to reduce the procurement risk; I wanted a qualified supplier. Safety concern was the number one factor. IT Procurement Manager Transport Achilles helps us comply with our legislative requirements - this is one of our key needs from their service. Buyer UK Utilities 01

3 Comprehensive sector-specific qualification Our supplier qualification questionnaires (and audit programmes) are configured around the risk management requirements of specific industries and regions. The scope and sequence of qualification stages that all targeted suppliers must follow is agreed with a community of industry buyers. Typically the following supplier information is captured and validated in a core qualification questionnaire: Core qualification questionnaire areas covered General company data Products & Services Finance Insurance & Legal Environment Quality Sustainability / CSR Health & Safety Additional modules are available to provide more detailed supplier qualification across areas of specific interest to your industry sector community: Advanced specialist qualification modules Supply Chain Mapping Financial Analysis Sustainability / CSR Carbon Reduction Many industry sector communities include audits as part of their supplier qualification process. The audit programmes align with the qualification questionnaire criteria, giving enhanced validation through on-site assessments. Illustrative qualification process for key suppliers showing all available options Key Suppliers KEY: Core qualification questionnaire Agreed industry qualifiication process Supplier Qualification Questionnaire Specialist Qualification Modules Community entry always requires completion of the core supplier qualification questionnaire Optional specialist modules available for community adoption Optional audit stage with community defined adoption / scope Supply Chain Mapping Financial Analysis Sustainability / CSR Carbon Reduction Some communities also require suppliers to complete additional specialist qualification or audits Audit Specific qualification process will vary reflecting the requirements of different industry sectors Qualification process completed 02

4 A partnership approach to industry solutions The solutions we provide to individual organisations benefit from our unique industry sector community model. We create, enable and develop these communities in conjunction with steering groups representing major buying organisations like you, in each of our key sectors. The buying community collaborates and develops best practice approaches to community-wide decisions: Scope of supplier qualification and standards for the community Detail of the core community qualification questionnaire The audit scope and rules for the community (if applicable) A supplier s entry to the community is subject to completion of the community s qualification questionnaire which Achilles validates. Validated suppliers (and their products and services) are then visible online to all buyer members in the Achilles community. The model provides a range of benefits, improving efficiencies, opportunities and standards for our buyers and suppliers. As a buyer you have access to a database of pre-qualified suppliers and benefit from best practice models and qualification standards developed and proven within the community. Traditional model The Achilles Community model Buyers Buyers Suppliers Suppliers WITHOUT ACHILLES: ONE-TO-ONE Narrow market view - excluding qualified new suppliers Duplication of supplier information and audit management Inefficient and costly for both buyers and suppliers to maintain Best practice opportunities missed WITH ACHILLES: MANY-TO-MANY Shared information - driving greater efficiencies Increased sourcing opportunities for buyers Increased supply opportunities for suppliers Up-to-date, validated information A tried, tested and trusted business model Solution investment shared across multiple suppliers and buyers 03

5 Reduce risk. Reduce cost. Raise performance Our supplier risk management solutions reduce cost and effort, allowing purchasing teams to focus on other high value and strategic purchasing activities. Reduced effort in supplier data validation Reduced effort in supplier data validation 1 6 FTEs engaged in validation % FTEs engaged in validation % In-house Using Achilles In-house Using Achilles UK Electricity Company UK Utilities Company 1 Source: 2012 Customer Interviews Supporting your suppliers through the qualification process We support suppliers through the qualification process following a proven model that has already qualified over 80,000 suppliers globally. We ll work with you to identify the suppliers that you wish to participate and then start our fully managed on-boarding campaign using branded s, direct mail and our supplier support teams. Supplier registration, validation, and publication process Process Suppliers Achilles Buyers Application Apply to join via the Achilles Community website and make annual subscription payment Data Submission Complete online questionnaire(s) Validation Data validation of questionnaire(s) Publish Successful qualification Validation complete Supplier information published Search Access supplier data Some strategic or high risk profile suppliers may need to undertake an Audit 04

6 Achilles Group Limited 30 Western Avenue, Milton Park, Abingdon, Oxon OX14 4SH UK T: +44 (0) F: +44 (0) E: /2013

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