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Implement a tool to deliver effective supplier performance management (SPM)

IAG

International Airlines Group (IAG) is one of the world's largest airline groups, with 464 aircraft flying to 243 destinations and carrying 77.3 million passengers each year. Formed in January 2011, we are the parent company of British Airways, Iberia, Vueling, IAG Cargo and loyalty programme Avios.

With the aim to provide a single, consolidated source of information to allow effective supplier performance management (SPM) across the Group, IAG has implemented Statess. The platform focuses on a number of key pillars including performance, innovation, corporate social responsibility (CSR) and risk. The supplier management software has been implemented to a wide range of suppliers / categories and has proved that consistent supplier relationship management (SRM) approaches are applicable to all our supply categories.

While the software was initially launched in the UK for British Airways’ strategic suppliers, it has progressively been rolled out to Iberia’s suppliers in Spain. The intention is for the platform to be rolled out to all strategic suppliers across the Group. 

The tool has enabled the performance data gathering and reporting process to be automated and additionally, supplier risk related information will migrate from spreadsheets onto the online platform to enhance visibility and enable automatically-generated reminders to be despatched to our ASMs (accountable supplier managers). The software will also support IAG’s CSR and innovation management processes, enabling a consistent CSR-related risk assessment to be undertaken and providing a platform for suppliers to communicate innovative ideas and opportunities.

Our relationships with our suppliers are critical to us and we identified the following opportunities: 

  • Deployment of a coherent and consistent approach to SPM across IAG, underpinned by effective governance
  • One single centralised reference-point for supplier information visible to appropriate people across our business
  • An enabler to manage CSR and risk
  • Delivering and demonstrating value beyond initial contract negotiation  


Four gateways to successful implementation

We worked with State of Flux for ten weeks in the spring of 2014 to successfully implement the Statess supplier management platform across IAG with a set of strategic, multi-directorate suppliers. We selected Statess based on the following benefits:

  • Market leaders in the area of supplier management
  • Able to meet requirements across IAG with the platform able to effectively accommodate an international and diverse supplier base 
  • Aligned to Group supplier management strategy and supporting business objectives
  • Extensive experience in managing and implementing supplier management programmes and excellent understanding of best practice
  • Good cultural fit with IAG maintaining a strong relationship with State of Flux over a number of years completing various projects in supplier and contract management areas

The ten week programme followed a clean structure involving four gateways. Within the direct phase, the project teams at both State of Flux and IAG were mobilised and the project timelines were agreed,

Next was the define phase, where the platform was configured. This required the input of multiple team members to agree on the nomenclature of the pages of the platform and to categorise the supplier base. The degree of flexibility offered within this phase sets the supplier management platform apart as a highly configurable but quick to implement piece of software. 

Following this, we entered the develop phase, in which the Statess developers worked collaboratively and responsively to configure the platform to our requirements. During this period, we engaged with the elected strategic suppliers and gathered the required performance, risk and governance data / information from the existing disparate systems within IAG. 

Following data upload and administrator training we proceeded to the deploy phase. Here the user acceptance testing (UAT) environment was made available to us and we examined the configuration in the product to confirm it fitted our requirements. In this test environment we were able to amend aspects of the configuration and freely make changes to the data for training purposes. State of Flux subsequently provided tailored training to our supplier management teams involved.

Following our sign off of UAT, the platform was transitioned into the production environment where we have worked, as part of the enable phase, to roll it out to our wider supplier community. This is well supported, with monthly engagements to review platform usage and adoption, where any queries are readily responded to.

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