Reduce risk. Reduce cost. Raise performance.

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Alan Barnett
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1 Reduce risk. Reduce cost. Raise performance. Services for professional procurement. Be better informed, make better decisions. Community Supplier Management System (CSMS) Sector-specific pre-qualification for key suppliers

2 Industry-specific supplier risk management As a Purchasing, Supply Chain or Vendor Management professional you are faced with the increasing challenges of managing data, compliance and risk in your supplier sourcing and procurement activities. Community Supplier Management System (CSMS) supports your organisation s risk management and procurement strategy by reducing the cost, effort and risk of sourcing and managing key suppliers. Validated information on key suppliers Achilles works with each of our industry sector communities to define the supplier pre-qualification standards required. We collect, validate and share this supplier pre-qualification information with our customers via an advanced and secure online platform. Our Community Supplier Management System is used by around 800 of the world s largest buying organisations to source and select suppliers that offer the products, services and standards they need. The heart of our solution is a systematic supplier pre-qualification programme with data capture through online questionnaires supported by rigorous validation through our assessment teams and qualified auditors. These pre-qualification questionnaires and stages are configured to reflect the specific requirements of each industry sector we serve: Automotive Construction Transport Utilities ICT Mining & Cement Pharmaceutical Power & Tech Oil & Gas Public Sector FMCG New Sectors Our secure cloud-based platform allows your buyers to search for products and services and view validated compliance and risk assessment information on the associated suppliers. Supplier pre-qualification and risk management We develop industry-specific communities to meet the pre-qualification needs of our buyers, providing a range of services and benefits: Best-practice pre-qualification standards agreed by the industry Fully managed supplier data capture and validation Systematic risk management and compliance Supplier data consolidation on a single platform Advanced online search and filter functionality Access to new pre-qualified suppliers Risk management information for stakeholders With our Community Supplier Management System (CSMS) you know that all existing and prospective suppliers you access in the community have gone through the same rigorous process of validated pre-qualification. We reflect your industry sector s protocols and standards in the supplier pre-qualification process driving consistency and compliance across your purchasing activities. My use of Achilles was not due to a cost factor, it was to reduce the procurement risk; I wanted a qualified supplier. Safety concern was the number one factor. IT Procurement Manager Transport Achilles helps us comply with our legislative requirements - this is one of our key needs from their service. Buyer UK Utilities 01

3 Comprehensive sector-specific pre-qualification Our supplier pre-qualification questionnaires (and audit programmes) are configured around the risk management requirements of specific industries and regions. The scope and sequence of prequalification stages that all targeted suppliers must follow is agreed with a community of industry buyers. Typically the following supplier information is captured and validated in a core pre-qualification questionnaire: Core pre-qualification questionnaire areas covered General company data Products & Services Finance Insurance & Legal Environment Quality Sustainability / CSR Health & Safety Additional modules are available to provide more detailed supplier pre-qualification across areas of specific interest to your industry sector community: Advanced specialist pre-qualification modules Supply Chain Mapping Financial Analysis Sustainability / CSR Carbon Reduction Many industry sector communities include audits as part of their supplier pre-qualification process. The audit programmes align with the pre-qualification questionnaire criteria, giving enhanced validation through on-site assessments. Illustrative pre-qualification process for key suppliers showing all available options Key Suppliers KEY: Core pre-qualification questionnaire Optional specialist modules available for community adoption Optional audit stage with community defined adoption / scope Supply Chain Mapping Agreed industry pre-qualifiication process Financial Analysis Supplier Prequalification Questionnaire Specialist Pre-qualification Modules Sustainability / CSR Carbon Reduction Community entry always requires completion of the core supplier pre-qualification questionnaire Some communities also require suppliers to complete additional specialist prequalification or audits Audit Pre-qualification process completed Specific pre-qualification process will vary reflecting the requirements of different industry sectors 02

4 A partnership approach to industry solutions The solutions we provide to individual organisations benefit from our unique industry sector community model. We create, enable and develop these communities in conjunction with steering groups representing major buying organisations like you, in each of our key sectors. The buying community collaborates and develops best practice approaches to community-wide decisions: Scope of supplier pre-qualification and standards for the community Detail of the core community pre-qualification questionnaire The audit scope and rules for the community (if applicable) A supplier s entry to the community is subject to completion of the community s pre-qualification questionnaire which Achilles validates. Validated suppliers (and their products and services) are then visible online to all buyer members in the Achilles community. The model provides a range of benefits, improving efficiencies, opportunities and standards for our buyers and suppliers. As a buyer you have access to a database of pre-qualified suppliers and benefit from best practice models and pre-qualification standards developed and proven within the community. Traditional model The Achilles Community model Buyers Buyers Suppliers Suppliers WITHOUT ACHILLES: ONE-TO-ONE Narrow market view - excluding pre-qualified new suppliers Duplication of supplier information and audit management Inefficient and costly for both buyers and suppliers to maintain Best practice opportunities missed WITH ACHILLES: MANY-TO-MANY Shared information - driving greater efficiencies Increased sourcing opportunities for buyers Increased supply opportunities for suppliers Up-to-date, validated information A tried, tested and trusted business model Solution investment shared across multiple suppliers and buyers 03

5 Reduce risk. Reduce cost. Raise performance Our supplier risk management solutions reduce cost and effort, allowing purchasing teams to focus on other high value and strategic purchasing activities. Reduced effort in supplier data validation Reduced effort in supplier data validation 1 6 FTEs engaged in validation % FTEs engaged in validation % In-house Using Achilles In-house Using Achilles UK Electricity Company UK Utilities Company 1 Source: 2012 Customer Interviews Supporting your suppliers through the pre-qualification process We support suppliers through the pre-qualification process following a proven model that has already pre-qualified over 90,000 suppliers globally. We ll work with you to identify the suppliers that you wish to participate and then start our fully managed on-boarding campaign using branded s, direct mail and our supplier support teams. Supplier Application, validation, and publication process Process Suppliers Achilles Buyers Application Apply to join via the Achilles Community website and make annual subscription payment Data Submission Complete online questionnaire(s) Validation Data checking of questionnaire(s) and audit including cross checking with third party data sources Publish Pre-qualification complete Validation complete Supplier information published Search Access supplier data Some strategic or high risk profile suppliers may need to undertake an Audit 04

6 Achilles Group Limited 30 Western Avenue, Milton Park, Abingdon, Oxon OX14 4SH UK T: +44 (0) F: +44 (0) E: /2016

Reduce risk. Reduce cost. Raise performance.

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