Defence is enhancing the way it monitors and assesses supplier performance. A new program, the Supplier Rating System (SRS), has been developed to better quantify and understand supplier performance and align Defence strategic objectives.
The SRS is a biannual reporting program that provides a holistic view of performance across suppliers’ contracts and allows Defence to make better, data-informed decisions.
The SRS enables Defence to build a robust understanding of its commercial relationships with suppliers and their contribution to the AIC Program and Sovereign Industrial Capability Priorities.
The SRS provides a structure for Defence to measure a supplier’s performance across all contracts that meet the SRS threshold. A supplier’s overall rating is generated through the average aggregation of the performance assessment of individual contracts and is supported by supplier insights. A supplier’s SRS rating is combined with supplier insights and supplier feedback to generate SRS performance reports.
Defence and Industry relationships
The SRS is Defence’s view of supplier performance and is one input into contract and relationship management.
Defence’s relationships with suppliers remain a key focus. These exist across the organisation and are built upon trust, transparency, and confidence to deliver the outcome together. The SRS is a tool that enables both Defence and suppliers to clearly understand how Defence views current performance and where opportunities for improvement lie.
Benefits
The SRS:
- makes it easier to assess supplier performance
- provides a holistic view of supplier performance and tracks supplier performance over time
- provides suppliers with the opportunity to contribute feedback on Defence’s performance as it relates to the supplier performance and provide contextual information on their operating environment to address any potential inaccuracies that may be present in assessing their performance
- is a key input into decision-making
- continues to promote and support constructive, transparent partnerships between suppliers and Defence.
The SRS will evolve iteratively and mature over time, informed by ongoing review and consultation.
Timing
Every 6 months, contracts captured within the SRS program threshold have their performance assessed for the previous 6-month period. The performance periods are set as:
- April to September
- October to March.
Resources
SRS Process
Suppliers will be contacted if one of their contracts has been captured within an SRS round, if unable to “opt-in”. Participants in the SRS will be invited to a briefing and training to support the involvement ensuring they are well informed and ready to take part.
Defence Supplier Rating System - Briefing
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