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Resiliency Scorecard

The Resiliency Scorecard provides a baseline understanding of trading partner resiliency attributes, enables consistent measures and incentives, and fosters a collaborative approach to understanding resiliency. The output can be standalone or integrated.

Goal

  • Better identify, measure, and incentivize resilient capabilities and outcomes
  • Foster partnership, transparency, and communication
  • Increase understanding and confidence of resiliency strategies

Benefits

  • Simplify and standardize resiliency measures
  • Enable differentiation and selection of resiliency
  • Promote collaborative resiliency strategies

 

Get Started
Background
FAQ

Four Simple Steps

1. Review

Provider Expectations: Add the scorecard to your supplier relationship management program. Notify suppliers of the request to engage.

Supplier Expectations: Self-assess using the scorecard, identify strengths and opportunities, and share your resiliency story with your customer.

The customer will drive the dialogue and set expectations. Suppliers are encouraged to self-assess in advance. Focus is on continuous improvement, not perfection.

The framework is broken down into five primary categories:

  • Supply chain mapping
  • Event communication
  • BCM assessment
  • KPI
  • Live discussion

Each category has a quantitative and qualitative segment. Active participation generally elevates the evaluation. Evidence of maturity and performance in each category earns additional points. Score is tallied by the customer and paired with a relationship level:

  • Unsatisfactory
  • Conventional
  • Strategic
  • Partner

It is anticipated that most trading relationships will aim for strategic or higher relative to the scoring result. Note: partnership designation requires activity in all of the five categories.

Scorecard section goals

  1. Mapping & Monitoring | To increase geographic transparency for critical products and services; activate proactive monitors; and promote collaborative response to events.
  2. Communication | To promote candid, timely and actionable sharing of event information between trading partners in order to maximize collaboration, reduce impact, and accelerate recovery.
  3. BCM Assessment | To evaluate whether a supplier has policies and programs in place to help prepare, prevent, and recover from supply disruptions.
  4. KPI | To demonstrate high service levels, periodic reporting, limited backorders and/or recalls, and proactivity in mitigating supply disruptions.
  5. Live | To increase resiliency through preparedness and partnership. Partnership grows through transparency and trust. Please take this opportunity to tell your resiliency story to your customer.

2. Connect

The customer will initiate the scorecard activity and may invite an interactive discussion.

The customer may request the supplier to present an overview of their resiliency program. A programmatic overview generally should cover:

  • All categories of business continuity management (BCM) assessment.
  • Additional resiliency themes:
    • Operations – asset redundancy, geographic diversity, production capacity
    • Product – criticality, alternates, optionality
    • Inventory – stocking strategy, nearshore assets
    • Other supply stream features that promote resiliency

3. Discuss

A live dialogue is encouraged to help elucidate strengths and opportunities, as well as to mutually agree on next steps.  The completed framework should offers on where resiliency can be enhanced.

Suppliers

  • Prepare a presentation telling your resiliency story
  • Tailor the presentation based upon the products of most interest to your customer
  • Increase customer understanding of your resiliency competencies
  • Align on strategies to address any opportunities to improve overall preparedness and performance

4. Enhance

The primary intent of the exercise is to identify, promote, and actualize resilient supply chains through the selection of aptly suited suppliers and continuous improvement.

Summary

Supply disruption is perhaps the most significant external threat to continuity of healthcare services. Scorecarding is one method of reinforcing resiliency in trading relationships to protect continuity of patient care. Healthcare providers and suppliers wish to elevate resiliency as a key selection criteria.

3 out of 5 HIRC members are likely or very likely to award business on the basis of demonstrated superiority in supply chain resiliency. Resiliency ranked #3 in importance for selection criteria overall. The model promotes conversation and provides guidance conducive to a more resilient supply chain. Output may be standalone or integrated into existing balanced scorecarding.

Providers are encouraged to apply this model in selection and evaluation of supplier relationships. Suppliers are encouraged to self-evaluate and to work towards continuous improvement.

The model is not intended to validate resiliency practices, but rather, to offer a consistent baseline for healthcare to apply as a standard method of semi-quantitative analysis in the context of healthy dialogue.

The Problem

No standard for resiliency scorecarding exists. Communication and evaluation of resiliency attributes are inconsistent. Without standards, customers are less able to select for and reinforce resiliency attributes. Without selection, suppliers are less able to identify and prioritize customer interests in this space. A standard for retrospective and prospective assessment of resiliency attributes is needed.

The Objective

Establish a standard for resiliency scorecarding to enable thoughtful selection and evaluation of attributes conducive to business continuity practices. Foster industry-wide adoption and continuous improvement.

Explore how to rebalance the value proposition in sourcing practices to appropriately consider resiliency characteristics in the selection and evaluation of supplier partners.

Design

Include retrospective and prospective signals of resiliency. Develop semi-quantitative measures for Transparency, Communication, Preparedness, Performance, and Partnership. Provide clear, balanced, and supportive interpretive guidelines. Drive toward continuous improvement, not perfection. Consider future opportunities for additional criteria and dual scorecarding.

What is the ask?

Providers

  • Share the framework with your suppliers
  • Request their standards_engagement in the exercise
  • Collaborate on completion of the scorecard
  • Include the output in your selection and review process

Suppliers

  • Review the framework
  • Meet virtually to complete the scorecard
  • Identify strengths and opportunities
  • Grow and maintain your resiliency score
What is the role of supporting parties?

HIRC

  • Support awareness of the framework
  • Collaborate with members and industry allies to continuously enhance the framework
  • Develop metrics that inform adoption and outcomes at an industry level

GPOs

  • Engage and align with the framework
  • Support outreach and deployment of the framework

Technology

Design programs and features that align with the framework

How were these standards derived?

Members collaborated over the course of 2020-2022 to develop these standards.  Iteration continues.

The intent is to effectuate the mission/vision of HIRC by fostering a more transparent and resilient supply chain.