AE Brochure; FY2011Ocean
Ocean
Achieving Excellence Performance Categories
QUALITY
Rate Quotes (submission and approval outside of the RFP process)
(10% weighted value)
Sum of Days =Average # of days
Number of Occurrences
Partner: All quotes are authorized by the Deere factory/unit employee that requested service and communicated to WWL via the quote form provided within 1 business day of request. (1 day average)
Key: All quotes are authorized by the Deere factory/unit employee that requested service and communicated to WWL via the quote form provided by John Deere within 2 business days of request. (2 day average)
Approved: All quotes are authorized by the Deere factory/unit employee that requested service and communicated to WWL via the quote form provided by John Deere within 3 business days of request. (3 day average)
Conditional: All quotes are authorized by the Deere factory/unit employee that requested service and communicated to WWL via the quote form provided, however response takes over 3 business days. (> 3 day average)
.
Invoice Accuracy
(30% weighted value)
Invoices reflect the contracted price and are paid on first pass:
Number of Conforming Invoices = % Invoice Accuracy
Total Number of Invoices
Partner: =99% - 100%
Key: = 97%-< 99%
Approved: =95%-< 97%
Conditional: 95%
Freight Claim Settlement
(15% weighted value)
Partner: All claims are acknowledged within 15 days from date of filing, and settled in accordance with the contract within 30 days.
Key: All claims are acknowledged within 20 days from date of filing, and settled in accordance with the contract within 45 days.
Approved: All claims are acknowledged within 30 days from date of filing, and settled in accordance with the contract within 60 days.
Conditional: All claims are acknowledged within 30 days from date of filing, take over 60 days to settle, or cannot be resolved in a mutually acceptable manner.
Submission of Contract Documents
(25% weighted value)
Partner: Contract is submitted prior to deadline, is orderly, and complete for signature upon receipt from supplier.
Key: Contract is on time, but missing elements, causing the contract and/or associated documents to be re-submitted.
Approved: Contract is on time, but missing elements, causing the contract and/or associated documents to be re-submitted multiple times.
Conditional: Contract and/or associated documents are not received by deadline, or are received in such disarray that John Deere must reorder in accordance with the contract checklist.
Environmental Sustainability
(20% weighted value)
Measures of the way in which suppliers attain qualitative and/or quantitative sustainable green savings with Deere to have a positive impact on the environment and community. Further, the supplier is focusing on business practice strategies that go beyond regulation and demonstrate commitment to a sustainable future.
Partner: Committed to aggressively pursuing areas of environmentally-conscious business practices with a green initiative strategy. Supplier is proactively sharing green project initiatives, their implementation plan, and the impact on the environment.
Key: Supplier has a green initiative strategy in place and is continuing to pursue environmentally-conscious business practices. Supplier is willing to share project initiatives and their implementation time.
Approved: Supplier is developing their green initiative strategy and environmental business practices. Supplier is collaborating with Deere to clearly define their green strategy.
Conditional: Supplier is not demonstrating a green strategy. In working with John Deere supply management, supplier is unable to resolve their lack of green strategy in a reasonable time period.
DELIVERY
Delivery Performance
(25% weighted value) A Delivery Rating is derived from earlyor late deliveries based on the advertised sailing date at the time of booking. The Delivery Rating is calculated on a percentage basis as follows:
(Early is defined as greater than or equal to 2 calendar days prior to the advertised sailing date and Late is defined as greater than or equal to 2 calendar days after the advertised sailing date)
Total Conforming Loads = Delivery Performance
Number of Loads
Partner: =>95% - 100%
Key: =>90% - < 95%
Approved: =>80% - <90%
Conditional: 80%
Average time from Sailing to receipt of the Bill of Lading
(45% weighted value) Rates the supplier’s performance on providing a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder.
Total Conforming Bills of Lading = % of Time from Sailing to Receipt of Bill of Lading
Number of Bills of Lading
Partner: =>99% - 100%
Key: =>97% - < 99%
Approved: =>95% - <97%
Conditional: <95%
Partner: When provided the master on time, The container Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 1 business days from the date of sailing, the RORO Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 2 business days from the date of sailing.
Key: When provided the master on time, The container Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 2 business days from the date of sailing, the RORO Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 4 business days from the date of sailing.
Approved: When provided the master on time, The container Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 3 business days from the date of sailing, the RORO Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 5 business days from the date of sailing.
Conditional: When provided the master on time, The container Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 4 business days from the date of sailing, the RORO Supplier provides a valid and error free Ocean Bill of Lading to the John Deere designated Freight Forwarder within 6 business days from the date of sailing.
RORO Load Securement
(15% weighted value)
Partner: Supplier meets all requirements to properly block, brace, and tie down product to insure damage free products to consignee.
Key: Supplier meets all requirements to properly block, brace, and tie down product to insure damage free products to consignee with no more than 1 failure.
Approved: Supplier meets all requirements to properly block, brace, and tie down product to insure damage free products to consignee with no more than 2 failures.
Conditional: Supplier meets all requirements to properly block, brace, and tie down product to insure damage free products to consignee with 3 or more failures.
Free Time for Containers
(15% weighted value)
Partner: Supplier always provides the full contractual free time to shipper from the date the trucker picks up the container to the date the container has been returned to the designated drop.
Key: Supplier incorrectly invoices containers still under the free time allowance in 97% – 99.9% of occurrences.
Approved: Supplier incorrectly invoices containers still under the free time allowance in 95% – 96.9% of occurrences.
Conditional: Supplier is incorrectly invoicing containers still under the free time allowance over 95% of the time.
TECHNICAL SUPPORT RATING
Evaluates thesupplier’s knowledge and use of industry technology to support development and manufacture of product for John Deere. Provides technically advanced products when applicable.
Technology and Innovation
(Technology Delivery Process, electronic imaging, GPS, etc.)
(20% weighted value)
Partner: Aggressively pursues and develops appropriate industry technology
Key: Pursues and develops use of appropriate industry technology
Approved: General application knowledge of appropriate industry technology
Conditional: Minimal knowledge of appropriate industry technology
Track and Trace
(30% weighted value)
Partner: Track and trace information is online, accurate, and updated at a minimum of 12-hour increments.
Key: Track and trace information is online, accurate, and updated at a minimum of 24-hour increments.
Approved: Track and trace is not provided on-line, but Supplier responds the request for information with 1 hour.
Conditional: Track and trace is not provided on-line, and the Supplier is non-responsive to requests for information. If information is provided on-line, the information is not routinely updated and/or accurate.
Electronic Communication
(10% weighted value)
Partner: Supplier maintains a highly refined system to electronically communicate load information, which, at a minimum includes web based Bills of Lading, delivery receipts, releases, and bookings and detailed imaging. Supplier employees are Microsoft office literate and fully able to communicate via email.
Key: Supplier maintains a web site, but is not able to electronically communicate all required load information, which, at a minimum includes web based Bills of Lading, delivery receipts, releases, and bookings. Supplier does not provide detailed imaging. Supplier employees are Microsoft office literate and fully able to communicate via email.
Approved: Supplier maintains a web site, but is not able to electronically communicate required load information, which, at a minimum includes web based Bills of Lading, delivery receipts, releases, and bookings, and does not provide detailed imaging. Supplier employees are not Microsoft office literate and fully able to communicate via email, and make frequent mistakes.
Conditional: Supplier does not maintain a web site that provides load information, which, at a minimum includes web based Bills of Lading, delivery receipts, releases, and bookings, and does not provide detailed imaging. Supplier employees fail to utilize the Microsoft office package and are non-responsive in replying to email.
RFP and Contract Completion
(20% weighted value)
Partner: Supplier knowledgeably utilizes the Microsoft office suite, including word, access, and excel, or the specified web based applications, for the purpose of quoting and RFP events. The electronic exchange of documents is executed seamlessly.
Key: Supplier knowledgeably utilizes the Microsoft office suite, including word, access, and excel, or the specified web based application, for the purpose of quoting and RFP events, however, attempts to communicate the RFP documents are repeatedly blocked.
Approved: Supplier is challenged when completing RFP and contract documents and must be coached through utilizing Microsoft applications and/or the specified web based application.
Conditional: Supplier is challenged when completing RFP and contract documents and must be coached through utilizing Microsoft applications. Attempts to communicate the RFP documents are repeatedly blocked.
Reports
(20% weighted value)
Supplier electronically provides a monthly statistical report, and a monthly exception report by the 10th day of the subsequent month in the format specified by John Deere.
Number of Reports Received on Time = % of Reports on Time
Total Number of Reports Due
Partner:=> 96% - 100%
Key: => 92% - <96%
Approved: = 88% - <92%
Conditional: < 88%
WAVELENGTH / RELATIONHIPS RATING
Evaluates the supplier’s initiative to support the business relationship.
Manages Day to Day Business
(30% weighted value)
Partner: Proactive -Supplier initiates communication of accurate and concise information. Reports on status of projects, corrective action; John Deere isn’t required to initiate contact. Offers alternatives in terms of business processes, operations, services, etc, without a request from John Deere.
Key: Active – Deere initiates communication/contact to supplier for information. Information is received from supplier accurately and timely with minimal follow-up by Deere once initial communication emanates from Deere. Alternatives in terms of the business are not offered without request from Deere.
Approved: Reactive - Deere initiates communication/contact to supplier for information. Information is adequately received in regards to accuracy and timeliness with more frequent follow-up required by Deere. Alternatives in terms of the business are not offered or acted upon by request of Deere.
Conditional: No Action - Deere initiates communication/contact to supplier with constant, extensive follow-up required in regards to accuracy and timeliness of information received back. Alternatives in terms of the business are not offered or acted upon by request of Deere.
Problem Resolution
(20% weighted value)
Partner: Proactively initiates resolution and implements corrective action. Follow-up is done in writing by supplier when necessary to ensure that verbal communication has been understood.
Key: Active participant in resolution. Follow-up will occasionally be done by supplier.
Approved: Active participant in resolution; some follow-up required. John Deere is required to follow-up with supplier.
Conditional: No supplier participation. Excessive follow-up required to resolve problems
Responsiveness to Requests
(20% weighted value)
Partner: Personnel are readily available and respond to requests. Customer Service Support dedicated to John Deere and is empowered to handle situation during contact.
Key: Quick to respond; minimal follow-up required. Customer Service Support dedicated to John Deere and is empowered to handle situation during contact.
Approved: Reacts to requests; some follow-up required. Customer Service Support dedicated to John Deere but is not empowered to handle situation during contact.
Conditional: Slow to respond; requires extensive follow-up. No dedicated Customer Service Support.
Business Relationship
(30% weighted value)
Recognition that each of their employees can influence the relationship with John Deere based on their actions.
Partner: Excellent teamwork and communication. Openness and trust exist in the business relationship; Embraces the John Deere culture, philosophies and short and long term strategies. Ready reception and responsiveness to ideas from John Deere. John Deere is a priority customer.
Key: Understands the John Deere culture, business philosophies and short and long term strategies. Customer focused – conscientious support staff, results oriented. Committed to building trust in the business relationship. Receptive and responsive to ideas from John Deere.
Approved: Initial understanding of the John Deere culture, business philosophies and short and long term strategies. Working to build trust in the busines relationship. Adequate/limited reception and responsiveness to ideas from John Deere.
Conditional: Not familiar with the John Deere cultures, business philosophies and short and long term strategies. Not customer focused; lacks credibility. Lacks commitment to the business relationship. Reluctant to document and share information.
COST MANAGEMENT RATING
Cost Reduction Suggestions (JD CROP)
(25% weighted value) – Suppliers are encouraged to submit cost reduction plans equal to 3 percent of their total projected spend each year. Submitted suggestions are documented for evaluation and credit is granted based on submission as opposed to implementation. Percent of submitted savings based on total projected annual spend.
Partner: => 3%
Key: = >1% <3%
Approved: >0% <1%
Conditional: 0%
Cost Management Initiative
(45% weighted value) – Measures the way in which suppliers work with Deere to address cost elements, focusing on their diligence in managing total product cost and their knowledge and understanding of total cost drivers.
Partner: Supplier actively initiates dialogue and activities in an effort to control total cost, and appropriate cost information is provided on the quote form.
Key: Supplier participates in total cost control dialogue and activities and appropriate cost
Information is provided on the quote form.
Approved: Most cost management dialogue and activities are initiated by Deere and appropriate cost
information is provided on the quote form.
Conditional: Supplier does not understand or share their costs, maintains a “cost plus” posture or refuses to negotiate pricing, or supplier refuses to share appropriate cost detail on the quote form.
Compliance with Contract Pricing
(30% weighted value) – Measures the way in which suppliers work with Deere to analyze and audit contracted pricing including managing the business of applying correct contract rates in a timely, accurate and consistent manner in accordance with business rules and SOP’s set forth for these functions.
Partner: Complies With agreed pricing and follows price adjustment (quote) guidelines. Supplier ensures that rates are applied correctly by their employees. The business scope of the contract is adhered to.
Key: Seldom has incorrect rates applied. Supplier ensures that all employees are aware of the pricing structure and/or the scope of business in the contract.
Approved: Repeated occurrences of incorrect rates applied and/or accepting business outside the scope of the contract, without pricing in place.
Conditional: Consistently fails in invoice according to agreed pricing and disregards the contract in place.
Source – AE Owner of relationship with supplier.
Market Competitive
(Yes – No – Unknown)–“No” will be a deduction of -30.1% of their CM rating score.
If a supplier is determined to be noncompetitive in the market, and in working with Supply Management is unable to resolve their lack of competitiveness in a reasonable time period, then the supplier’s AE rating will be conditional. If market competitiveness is unknown, then the supplier’s cost management rating will only be judged on Cost Reduction Suggestions and Cost Management Initiative.
JD CROP Non-Participation Penalty
Where supplier is set up to participate in JD CROP, a minimum of one suggestion submitted per fiscal year is required. A 10% deduction will be applied to the Cost Management rating score if supplier does not participate.
FY2011Page 1 of 10
Revised: 01Nov10