Microsoft Word - CWMP Performance Guide V1 0 Final



Kellogg Company’s

Contingent Workforce Management Program (CWMP) Associate Vendor

Performance Guide

Please note that XRM is a registered service mark of Acro Service Corporation and AcroTrac® is a registered trade mark of Acro Service Corporation. All rights are reserved.

Table of Contents

ASSOCIATE VENDOR’S AUDITS AND EVALUATIONS 2

Associate Vendor Audits 2

Associate Vendor Performance Scorecard 2

Performance Standards 2

Quarterly Business Reviews (QBR’s) 2

Annual Performance Review Meetings 2

Exhibit A - Sample Vendor Scorecard 2

ASSOCIATE VENDOR’S AUDITS AND EVALUATIONS

Acro Service Corporation (Acro) in consultation with Kellogg Company has identified and implemented the following Auditing, Performance Measurement, and Reporting Procedures to ensure that its CWMP meets and exceeds the expectations of Kellogg Company.

Associate Vendor Audits

Acro and Kellogg Company reserve the right to audit the Associate Vendors regarding compliance to the placement of contract labor employees located at Kellogg Company. Audits will be conducted by Acro when required and no more frequently than quarterly. Acro will provide a reasonable period of notice to the Associate Vendor in case any audits are planned. Audits will consist of verification of compliance to established policies and procedures. The following items at a minimum will be verified:

• Background Screening Results

• Drug Screening Results

• Employment Verification Documentation: I-9 and W-2

• Payroll Verification: Payroll report or Copy of paychecks

• Markup component verification such as SUTA/FUTA letters, Workers Compensation etc.

The Acro Program Manager or delegate will review the documentation provided by the Associate Vendor to ensure compliance with items as outlined in the Associate Vendor Agreement and to make sure all required payments are being made to the contract employees. Results of the audit may be used as a performance metric utilized in the Quarterly and/or Annual Performance Review. Results of any/all audits will be provided to Kellogg Company.

Associate Vendor Performance Scorecard

Acro, in concert with Kellogg Company , has established performance standards and targets for Associate Vendors participating in the Kellogg Company CWMP as detailed later in this document and will notify the Associate Vendors if any of these performance standards and targets change. Performance metrics for the Associate Vendors have been grouped into five categories as follows:

1. Participation

The two metrics used under this category are:

a. Response Rate

This is calculated as the percentage of times the Associate Vendor submitted at least one qualified (i.e., meeting minimum requirements, within the requisition timeframe and accepted by the Acro Program Manager or delegate) submittal for job requisitions broadcasted to the Associate Vendor.

b. Fill Ratio

This is defined as the percentage of positions broadcast to the Associate Vendor that were filled by the Associate Vendor (Positions filled/ Positions broadcast minus Positions cancelled)

2. Quality

The two metrics used under this category are:

a. Failure to Start

This is calculated as the percentage of times the selected candidates from the Associate Vendor did not start their assignment with Kellogg Company (was a “no show” or as a result of unacceptable background check or failed drug test).

b. Retention Rate

Defined as the percentage of Associate Vendor’s employees assigned to Kellogg Company on a contract basis who continue or have completed (via positive termination) their assignment as required by Kellogg Company or have been hired by Kellogg Company directly.

3. Compliance

The two metrics used under this category are:

a. On-boarding Compliance

This metric is based on the results of the compliance audits of Associate Vendor’s records that Acro and Kellogg Company conduct (as mentioned above) to verify the contractual requirements with respect to the on-boarding of their CLPs (Ex., drug and background checks, employment eligibility, security clearances and certifications). Any infractions discovered during the normal operation of the program will also be documented. This metric is calculated as the percentage of Associate Vendor’s CLPs at Kellogg Company whose specific on-boarding requirements were not met.

b. Invoice Accuracy

Inaccuracies of financial data reported by the Associate Vendors such as wages and markups of the CLP, billable expenses, etc. will be reported under this metric. Although the Associate Vendors are not responsible for the direct creation of an invoice to Kellogg Company, the accuracy of the payments computed by Kellogg Company will be affected by any inaccurate reporting.

4. Speed

The metric used under this category is:

a. Response Time by Labor Category

Kellogg Company requires Acro to track and report on the average response time defined as the time (in business hours) between the broadcast of the job requisition to the characteristics of the different labor categories (e.g., Light Industrial, Professional, Engineering, Technical, Administrative, etc.), this number is tracked and reported by each labor category in which the Associate Vendor elects to participate in receiving job requisitions. Note that if an Associate Vendor desires not to participate in filling requisitions for any given labor category, they may communicate this to the Acro Program Manager or delegate after which, this metric will not be tracked for that Associate Vendor.

5. Cost

The metrics reported under this category are:

a. Average Submitted Bill Rate

This factor measures the deviation between the NTE (Not to Exceed) bill rates allowed by the broadcasted requisition and the submitted bill rate on Associate Vendor submittals. Note that since the XRM System as configured for Kellogg Company does not allow the agencies to bid above the NTE rates published in the requisitions broadcast to the Associate Vendor, this deviation would be either zero (when a bid is at NTE rate) or positive when a bid is at a rate lower than the NTE rate. This metric will be calculated as the percentage of the average deviation against average NTE rates for all the submittals made by the Associate Vendor. An Associate Vendor with a higher number in this category is considered to be performing better at controlling Kellogg Company costs compared to an Associate Vendor with a lower number.

b. Average Filled Bill Rate

This factor measures the deviation between the NTE (Not to Exceed) bill rates allowed by the broadcasted requisition and the actual bill rate of Associate Vendor’s CLPs placed at Kellogg Company. This metric will be calculated as the percentage of the average deviation against average NTE rates for all the submittals made by the Associate Vendor. An Associate Vendor with a higher number in this category is considered to be performing better at controlling Kellogg Company costs compared to an Associate Vendor with a lower number.

The Acro Program Manager or delegate will prepare the performance scorecard quarterly (a sample scorecard is attached) for each of the participating Associate Vendors reflecting the achievement against the program standards. The scorecard results will be shared with the Associate Vendor as well as the Kellogg Company management team. The Acro Program Manager or delegate will review the scorecard with each Associate Vendor during the Performance Review Meeting and will capture/report any comments or discrepancies brought forth by the Associate Vendor. Results of the Associate Vendor’s performance scorecard will be a consideration in the renewal of the contingent labor staffing agreements at Kellogg Company.

Performance Standards

Acro and Kellogg Company have established the following standards of performance for the Associate Vendors participating in the Kellogg Company CWMP during a calendar year taking into consideration industry benchmarks, supplier pool capabilities and Kellogg Company business requirements. Appropriate consideration has been given to the newness of the CWMP and the learning curve for the Associate Vendors participating in the program. A comparison of the actual performance of the Associate Vendors (as reported in the quarterly scorecard defined above) against the following standards will determine any follow-on actions to be taken by Acro. Actions taken may include root cause analysis, training, counseling, a performance corrective action plan, tier demotion, or possible removal from the program.

| | | |

|Associate Vendor Performance Metric | |Target |

|Participation | | |

|Response Rate | |At least one qualified submittal within target response time >75% of the time |

|Position Fill Ratio | |Equal to or more than 4% |

|Quality | | |

|Failure to Start | |5% or less |

|Retention Rate | |95% or more |

|Compliance | | |

|On-boarding compliance | |Requirements met >95% of time |

|Invoice Accuracy | |Accuracy rate of 99% or more |

|Speed | | |

|Resume Response Time – Light Industrial | |Within 8 hours, 95% of the time |

|Resume Response Time – Technical Resume Response Time – | |Within 20 hours, 95% of the time |

|Professional Resume Response Time – Engineering | |Within 20 hours, 95% of the time |

|Resume Response Time – Administrative | |Within 20 hours, 95% of the time |

| | |Within 8 hours, 95% of the time |

|Cost | | |

|Average Submitted Bill Rate | |Equal to or more than 2% |

|Average Filled Bill Rate | |Equal to or more than 2% |

Quarterly Business Reviews (QBR’s)

The Acro Program Manager or delegate will review Associate Vendor’s quarterly scorecards with Kellogg Company and schedule review meetings (by telephone or in-person) with selected Associate Vendors. During these meetings, the actual results, plans, and actions for continual performance improvement will be discussed. With respect to Associate Vendors who are not meeting the minimum thresholds identified, joint root cause analyses will be conducted to determine the issues faced by the Associate Vendor that affected its performance and the actions the Associate Vendor (and Acro if applicable) agrees to take to improve its performance will be documented. Based on these discussions, a Performance Improvement Plan (PIP) will be formalized and put into action. The PIP will be tracked by Acro's Program Manager and the Associate Vendor on a monthly basis and adjustments made if necessary. If the subsequent quarterly scorecard does not show sufficient progress towards the committed levels of service (as documented in the PIP), the Associate Vendor will remain on a modified PIP for one additional quarter. If the actual performance does not track close to the committed levels of service for the third consecutive quarter, further corrective actions may ensue up to and including tier demotion or possible removal from the CWMP.

Annual Performance Review Meetings

The Acro Program Manager or delegate will conduct annual performance review meetings (either by telephone or in person) with each participating Associate Vendor. Each meeting may consist of, but not limited to:

• Review of the Associate Vendor’s quarterly scorecards

• Feedback from Hiring Managers and performance measured on key metrics

• Issues, concerns, or suggestions from the Associate Vendor (this is a time for open dialog and review of program changes)

• Overall participation in the CWMP at Kellogg Company

• Discussion of expectations, upcoming opportunities and new developments within the program

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BAE Systems -ES CWMP – Associate Vendor Performance Guide V1.0 Proprietary & Confidential

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Exhibit A - Sample Vendor Scorecard

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