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Supplier capability building project and toolGuidance for use

Introduction to documentThe document aims to increase awareness and understanding of the supplier capability development project objectives, goals and methodologyIt works to introduce and handover the Capability Assessment Tool. Specifically:Review the toolUp skill participants in how to conduct and record assessments and make sense of the resultsExplain how to tailor the tool

Detailed information on how to tailor the tool can be found in the cleansed Capability Assessment tool

2The assessment process should involve the customers supply chain team, the supplier and the customers capability development team3

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Strategic Management

We can talk about these areas in your office We would like to see your processes in action to conduct the interview on the following areas You should conduct a pre visit briefing with your supplier either individually or as a group to introduce the assessment components4

It is important to build trust with the supplier and illustrate the benefits they will get from conducting this assessment with you5Once we have completed your interview, we will analyze your results in each area. Individual results compared to best practice ;

Individual results

Summarized resultsSummarized results compared to other suppliers (anonymized) ; By default, results will be shared with the customer to select the best way to help you to become better. You can tell us if you dont want us to share any specific information with your customer.It is useful to ask suppliers to prepare documents in advance of your visit6Employee and salary recordsFinancial statements (e.g list of assets, bank account statement, profit and loss statement, balance sheet)Contracts / agreements with customers and/or suppliersProcess documentation (e.g ISO 9001)Business planQuality / hygiene / safety records

IMPORTANTDont worry if you do not have these documents it is not a test!Please do not create any new document 6The Capability Model consists of an assessment tool and a results dashboard7

1. The dashboard publishes results at Capability & Competency level provides overall supplier rating from A Dworks automatically2. The assessment tool11 sections and 172 questionsfor recording all interview information (printed & digital)includes multiple choice options to support interviewerprovides scoring guidelines and requirements12Plus...How to use this tool with full instructions by assessment area and interview guidanceFor each question in the Capability Model a good practice / requirement is defined and up to 5 points can be scored8Capability AreaComp. AreaQuestionQ1Financial Manage-mentAccountingDo you clearly separate between private and business money?Q2Product QualityPerishable handling expertiseIs the product kept in the right conditions during processing?

AnswerGood Practice/ RequirementScore (out of 5)There is no separation. Business money is used for private purchases

Maintaining separate account for business and private use1Raw materials are kept on the floor and in the bucket without proper covering. Plastic barrel which have been used to carry chemicals is now used for storing and processing milk.Appropriate and hygienic handling without risk of cross-contamination2Assessment Tool StructureEvaluation MethodCapability Model Structure (1/2)8Each question is prioritized and weighted accordingly to come up with a score per Capability Area and Competency Area9QuestionCapability Area 1Comp. Area 1PriorityCapability Area 2Comp. Area 2PriorityQ1Do you clearly separate between private and business money?FinanceAccounting1N/AN/AN/AQ2Is the product kept in the right conditions during processing?Product Quality

Perishable handling expertise1PremisesProduction and processing quality and efficiency2PointsCap. Area 1Comp. Area 1Cap. Area 2 Comp. Area 2Q144N/AN/AQ28844PriorityWeight142230.5Allocation & Weighting MethodCapability Model Structure (2/2)Points per Question = Score x Weight where weight depends on the priority. Points per question are added up to arrive at Capability Area and Competency Area scores9There are some important principles that should be followed when conducting a visit (1/2) Go preparedUnderstand as much as you can from your customerTake a printed assessment tool and familiarise yourself with it before starting Take a digital camera

Put the supplier at easeCreate an environment of trust, honesty and openness. Put the supplier at easeTry to limit the assessment to 3 hours and conduct it in a comfortable area without distractionExpress questions in the suppliers language. Use examples to explain 10There are some important principles that should be followed when conducting a visit (2/2) Be objectiveGo with an open mind and listenDo not prompt the supplier for an answer if they do not know it

Gather adequate dataAssessors should conduct visits in teams of 2 or more. This helps to cross reference findings afterwards as well as with observation and documentationGo at a time when production and processing are at their peak. Observing these processes is essential for some components of the interviewTake good notes during the interview and write them up on the same day11Amending the toolYou will need to tailor the tool when you conduct projects with other retailers in BangladeshWhen designing this tool, the team considered:The project goalsInclusive business goalsStrategic growth targets (commercial goals)Customers values, requirements and processesBangladesh perishable supply chain known issuesThe main components you could tailor are:Specific customer questionsSome category specific questions (perishable sourcing)Scoring Guidelines and RequirementsWeighting / prioritiesYou may also want to add / remove entire capabilities depending on the retailer and SME portfolioFor more information refer to the How to tab within the tool

12Supplier Assessment MethodInterviewerSupplierSCD teamIdentify supplier & interviewer

Conduct pre visit interviews & gather info

Conduct assessment (premises visit)

Document visit

Validate visit information

Gaps?

Validate info gaps & conflicts

Final documentation & scoring

Summarise results and playback

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