OECM’s Supplier Relationship Management (SRM) team continues to implement transformative advancements to our supplier-based initiatives in alignment with OECM’s evolving strategic direction. In response to valuable feedback from OECM supplier partners and customers, and our commitment to continuous improvement, the Supplier Recognition Program (SRP) for 2024 was subject to critical enhancements to its evaluation methodology that promise greater fairness, transparency, and supplier engagement and ultimately drive performance improvements across the supply chain.
Piloted in 2019 as an integral first step in strengthening OECM’s relationships with supplier partners and driving greater performance, the SRP aims to drive long-term performance improvements by recognizing and motivating supplier partners to deliver continued savings, value, choice, and service to our customers.
The 2024 SRP now includes an enhanced evaluation methodology that transitions from a score-based to a criteria-based evaluation approach. Additional improvements include a new Diamond recognition level, increased emphasis on customer feedback, and alignment with OECM’s strategic growth objectives during the assessment process. Recognition levels are now based on performance across five key areas, and achieving all five evaluation criteria qualifies a supplier for the prestigious, new Diamond level, demonstrating strong alignment with OECM’s strategic growth objectives, and delivering exceptional performance and value to our customers.
The 2024 SRP will be based on meeting the following five Evaluation Criteria during the SRP evaluation period.
- Spend/Savings: Supplier achieving either a total spend of $5 million or demonstrating significant savings to customers.
- Customer Excellence: Suppliers receiving ten or more customer survey results and achieving an average customer satisfaction rating of 70% or higher.
- Business Growth: Suppliers can qualify in this category by either achieving a 50% or more Spend Growth for the evaluation period, or executing ten or more new CSAs with active spend in the current program year.
- Strategic Alignment: Recognition is based on supplier partners’ strong alignment with OECM’s strategic priorities and commitment to Environmental, Social, and Governance (ESG) factors.
- Compliance: Suppliers are recognized for adhering to the OECM’s Supplier Code of Ethics, and meeting all contractual obligations, including KPI and spend reports, as per the Master Agreement(s).
OECM’s Director of Supplier Relationship Management, Khusen Shukurov, shared his thoughts on the improvements, “The improved recognition methodology and evaluation criteria are based on OECM’s strategic vision and growth objectives, customer feedback from our previous programs, and our pledge to promote stronger ties with the supplier community.”
The Supplier Relationship Management team has collaborated with other OECM business units, including Marketing and Communications and Customer Relationship Management, to communicate the enhancements with our stakeholders through targeted communications, developing an updated guidebook to educate suppliers on the new methodology, and monitoring the program to facilitate future improvements. Stay tuned, we will be announcing the results of the 2023 Supplier Recognition Program in early April!
