Supplier Categories

Shivani Kushwah Updated by Shivani Kushwah

Deep-dive topics are for primarily for system administrators to fully understand the intricacies of the product. They offer detailed insights and access to advanced settings that can be crucial for tailoring the system to meet evolving business requirements. However other product related roles can leverage this in-depth knowledge, to help optimise configurations, ensuring that the product delivers the best possible outcomes in line with the organisation's objectives.

Applicable modules: Supplier

Overview

In supplier management, categorisation is pivotal in streamlining processes and mitigating risks. The standard system configuration provides four supplier categories—Standard, Preferred, Strategic, and Uncategorised—as a foundational framework within which suppliers can be organised and managed effectively.

Within each category, suppliers are further segmented according to risk levels: Unassessed, Low risk, Medium risk, and High risk. This segmentation enables organisations to develop tailored management plans, ensuring that supplier relationships are nurtured, and risks are managed proactively.

While the provided standard config helps optimise supply chains, foster supplier partnerships, and enhance operational efficiency, the system does allow for further customisation and introduction of new categories, to tailor operations to meet specific needs.

Create and Edit

System administrators can add new supplier categories by clicking ‘+ Supplier Category’ via the Command Centre’s ‘Supplier Categories’ Navigation item.

Or to edit an existing item, click the ‘Edit’ action button to the right of an existing category.

button to create or edit a supplier category

Using the feature to 'copy an existing supplier category' when establishing a new one is a strategy that saves time. It allows for a quick setup by using the framework of an existing category, which can then be customised with minimal changes. If you wish to start from scratch, leave this option as (NONE).

option to copy from existing category

Assigning Management Plans

When you create or modify a category, you'll notice four sections for risk levels: unassessed, low, medium, and high, located under the "Supplier Risk Status" heading.

For each risk category, you can assign relevant management plans by clicking the "+ Add existing management plan" button, aligning them with the corresponding level of risk.

If editing a supplier category an option of “+ Create a new management plan is also displayed. See creating management plans

Upon adding a management plan, select the 'i' info button to review the artefacts included within it.

To remove a management plan from a risk level, click the trash bin icon located to the right of the plan.

After associating all the necessary plans, finalise the process by clicking the 'Submit' button. For modifications to an existing category, the 'Save' button will appear for confirmation of changes.

When adding a new supplier, users have the option to categorize the supplier. This can be done conveniently through the 'New Supplier Wizard,' which offers guidance in selecting an appropriate category for those who may be uncertain about which one to choose.

step two of the new supplier wizard with unsure of category link
This option is not available if adding a supplier via the 'New Supplier Form’.

When the user clicks the link for assistance in selecting a category, they are presented with a set of questions to answer. After answering the required questions, a recommendation will be displayed as to what category to classify the supplier as.

This recommendation tool uses the assessment functionality together with grades. When navigating to the “Assessments” category in the Command Centre, there is a “System Assessment” tab. Questions and their scoring can be configured here. The assessment type MUST remain as “Scored”. Use the Grades functionality to create or edit grades that equal the Supplier categories recommendations.

Click here for more information on managing assessments.

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