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KPI’s define the metrics and the way in which the Account Teams manage the MRO supplier partner's performance against agreed SLA’s, at a site level. KPI results will typically be aggregated to a country / regional / global account level as required to meet CBRE and client reporting requirements, using the reporting formats and to the frequencies agreed upon with the client.

KPI’s should adopt a SMART approach which ensures that they are;

Specific

Measurable

Achievable

Realistic, and

Time Constrained

Examples of MRO KPIs:

CBRE Account Teams should work closely with the supplier partner to establish and define the specific account / site KPI’s against measurable, consistent and appropriate leading and lagging indicator metrics, in order for the supplier partner to produce and maintain an effective KPI scorecard. KPI’s are unique to the account / site and specific CBRE / client requirements.

The documented KPI categories, metrics, baseline, calculations and targets for the full scope of MRO shall be managed and accurately reported by the supplier partner, with supplier performance managed by Account Teams with support from Global or Regional management as appropriate. KPI target archival and reporting is the responsibility of the supplier for the SLA’s within the scope of the contract, reported through monthly reporting detail and KPI scorecards using the supplier partner's own KPI management system where applicable.

The supplier partner is required to perform the following:

Track and consistently report KPI metrics to the agreed calculation methodology and to the agreed frequencies
Achieve or exceed KPI targets providing the necessary validation evidence as / when required by CBRE / the client
Interpret and clearly present performance trends, compliance / non-compliance and KPI scores achieved
Explain key outcomes from the data and propose appropriate remediation actions- should performance fail to meet the agreed targets
To remediate issues through robust action plans and strive to continuously improve performance to meet and exceed KPI targets
To escalate material KPI performance issues outside of standard reporting frequencies as required and as deemed necessary

KPIs shall be periodically reviewed to ensure that the indicators provide the necessary and appropriate metrics to effectively and objectively manage, report and validate the supplier partner's performance consistently. Account Teams shall ensure that MRO supplier partner KPI reporting is reviewed, accurate, validated and where applicable - appropriate remedial actions are escalated, agreed, progressed and closed-out.

KPI Purpose

Suggested KPI's - Relevant To Use For MRO

Responsibility Of Account Teams

Responsibility Of The Supplier

MRO-022 Ver 1.1 (April 23)

It is important to take the time to create both leading and lagging KPI’s which:

Accurately reflect each service line's individual priority performance measurements, either as separate KPI scorecards for each individual service line, or as a more comprehensive scorecard consolidating all service lines
Have consistent themes and subjects to enable aggregation and reporting
Provide an appropriate level of performance measurement which can be effectively used to manage the efficiency of the service
Are relevant and will be consistently used to manage supplier partner performance

Within the CBRE contract with the supplier partner any KPI non-compliance service credits should be established and documented, including the calculation and processing methodology. Where KPI scores are non-compliant, any service credits or management fee at risk impact is to be reported, processed and escalated internally by the appropriate Account Team. It is the Account Teams' responsibility to ensure that accurate service credit processing is established and maintained at all times. Onward reporting of KPI metrics to the client is to be conducted by the Account Team to meet Account / Client KPI reporting.

Conclusions

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KPI #

KPI

KPI Description

Measurement

Frequency

Delivery performance, - fill-rate compliance

Next-day delivery rate

Returns / credits compared to overall sales

Back-orders compared to full-order completion

% of items purchased through e-commerce

Average order size

Percent of orders less than $x

Customer satisfaction

Safety rating OSHA 300 log reporting

Delivery performance

Next-day delivery rate

Returns / credits

Back-orders

e-commerce

Average order size

Percent of orders less than $x

Customer satisfaction

TRIR rating

>95% fill-rate

>95% next-day delivery

<2%

<5% back-order

>90% filled via e-commerce

Defined by account

<2%

Client objective & subjective rating of CBRE FM service and tier 2 subcontracted services