The Supplier Business Engagement Model (SBEM) is a collaborative approach to supplier selection, designed to strengthen supplier relationships and drive greater spending with few suppliers - those with the products, capabilities, innovation and talent that best complement Nortel's own strengths.

The model consists of eight building blocks, governing all aspects of supplier management, from initial engagement through to ongoing performance assessment. It also includes:

• A three-tiered approach to supplier classification, where suppliers are classified as Approved, Preferred or Strategic
• Portfolio Strategy Teams - These teams act as the decision-making bodies for supplier selection. They carefully evaluate a supplier's ability to provide Value, Velocity and Vision - the same attributes customers required from Nortel.

By tapping into the innovation and technology prowess in the external industry, Nortel is better positioned to bring unbeatable solutions to the marketplace, improve R&D effectiveness, reduce costs and speed time-to-market.

A business proposition is the starting point of the evaluation process that determines a supplier’s classification (Approved, Preferred or Strategic).

Value

Quality Demonstrated "continuous improvement" culture that fosters quality and reliability in every aspect of the business Price/Cost Supplier has best-in-class pricing and is committed to a documented cost reduction road-map Delivery Supplier meets or beats delivery dates and offers security of supply Account Management Supplier provides high standard of account management/support to Nortel throughout product or program life-cycle Business Strength Supplier is strongly positioned for long-term business success

 

Velocity

Agility & Flexibility Supplier has the ability, willingness and resources to adapt to Nortel's evolving requirements (e.g. processes, schedules, demand) .and engage in new business opportunities Alignment Strong alignment between Nortel requirements and supplier’s products/services Time-to-Market Supplier offers "first to market" advantage Geographical Reach Supplier is fully able to .support Nortel's multi-national needs

 

Vision

Innovation Supplier has a clear structure and investment to cultivate and demonstrate innovation Organizational Integration There is demonstrated, ongoing collaboration and integration between Nortel and suppliers Strategic Fit Supplier has a clear strategic fit which aligns to Nortel business philosophy and delivers a competitive advantage Systems Knowledge Supplier has comprehensive product/service knowledge to effectively deliver complete solutions to Nortel Customer/Industry Knowledge Supplier demonstrates superior knowledge of the communications industry landscape

In order to assess existing and new suppliers' capabilities, a number of cross-organizational Portfolio Strategy Teams have been put in place. These teams are responsible for performing the due diligence necessary to assess, classify and engage best-in-class suppliers and to ensure those suppliers continue to meet Nortel's performance criteria.

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• Embedded Software & networks elements
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