A Supplier review is the process by which we measure and monitor the performance of our Suppliers. This is completed either:

1. On a scheduled basis, such as quarterly (QBR) or annually (ABR), or
2. When a Supplier's performance is deemed below a satisfactory level that requires immediate attention.

 Any Review should include the supplier’s financial stability, quality of products or services, delivery times, and customer service. 

RL-022 Ver 1.0 (Jan 24)

Confidential & Proprietary | 2024 CBRE Inc.

What is a Supplier Review

Useful Links

Resource Library

Conducting Supplier Reviews

Resource Library

Page 1 of 1

The need to conduct a review

Ensuring compliance to the Contract objectives is the key driver in conducting any review.  Issues that may be used to trigger a Supplier Review are, but not limited to:

1. Failure to maintain C-SAT scores
2. Poor Service delivery
3. Customer complaints on both commercial and/or technical background
4. Failure to maintain compliance to the Contract
5. Failure to embed ESG and Sustainability improvements to the delivery of Products or Services

• The SLA embedded within the Contract should clearly define not just the services being performed but the standard in which they are to be delivered
• For goods being supplied the SLA shall define the standard of quality including any reference to third party standards. This for example- may apply to particle filters for a Data Centre HVAC system
• The SLA shall also describe the frequency of services and also the frequency or period of operations

What are the factors we need to consider in the Review ?

Inadequate Needs Analysis

Reduce Procurement Risk

Quality of Work/Services

1

Inadequate Needs Analysis

Reduce Procurement Risk

Supplier Relationship Management

3

Inadequate Needs Analysis

Reduce Procurement Risk

Risk Management

2

•  Clearly defined responsibilities and obligations of each party involved in the contract. This includes the buyer, Supplier, and any third-party stakeholders
•  Ensure roles and responsibilities for risk management are communicated and understood by all parties. This promotes accountability and ensures that each party knows their obligations in managing the identified risks

• Supplier Relationship management is key to a successful Contract. Suppliers are to work with teams seeking new opportunities to improve service levels and pricing and, collaborate on all communications
• Seek long-term partnerships that improve Client outcomes
• Always consider the long-term not short-term horizons

•  Continuously monitor the progress of the contract and regularly review the effectiveness of SLA's, KPI's and other factors. This involves tracking key performance indicators, conducting periodic audits, and reviewing supplier performance against agreed-upon metrics
• Implement a robust reporting mechanism

Inadequate Needs Analysis

Reduce Procurement Risk

Contract Compliance

4

Inadequate Needs Analysis

Reduce Procurement Risk

Sustainability and Innovation

6

Inadequate Needs Analysis

Reduce Procurement Risk

Problem Resolution

5

• In case of any identified risks or issues, take appropriate corrective actions. This may involve revising contract terms, renegotiating pricing or delivery schedules, or engaging in dispute resolution processes
• Escalate significant risks or issues to higher management or relevant stakeholders, if necessary, to ensure timely and effective resolution

• Look for ways to include ESG and Sustainability to be embedded in operations processes
• Contracts and SLA's to include components seeking commitment from the Supplier on Sustainability and ESG principles and operations 

Inadequate Needs Analysis

1

Reduce Procurement Risk

1

• Document why the review is required (How did we get here?, Why are we doing the Review?)
• Define the Review criteria
• Define the desired outcomes

• List in order of importance what needs to be achieved

Remember that in many cases you will not achieve every item in your list but seek to maximise the results of the Review

• Pull together the data relevant to the inputs and outputs of the operations.

Use Global Spend Dashboard data, contracted KPI's and SLA's to ensure you have the right information for discussion 

• Gather the stakeholders (Team) that support the operations and the data behind your objectives.
• Set clear expectations for each team member and who discusses what component.

Setting a clear meeting Agenda and responsibilities ensures a process is followed.

Document planned outcomes for each talking point.

• Implement the Review outcomes
• Gauge performance over the next "x" months, as agreed
• Set a further review to follow up on targeted outcomes

Note: Process cycle starts again

What are my planning and outcome steps ?

Poor Contract management

• Conduct the Review in a place mutually agreeable to all parties to ensure common grounds of opinion
• Notarise outcomes from the meeting and who will complete tasks, and when

Ensure the Supplier is provided the Review notes in a timely fashion with dates for completion of each component